Attitudes To Debt

How comfortable are you going into debt? Everyone feels differently about embarking on this journey and will approach debt management in various ways. The way that we view debts usually is driven by our underlying attitude towards debt. There are two types of attitude – positive and negative.

Negative Attitudes To Debt

Debts can have a large impact on our finances and our ability to grow our wealth if they are not kept in check and used wisely. Without realising it, we may develop unhealthy attitudes toward debt.

These unhealthy attitudes are:

• Borrowing money without understanding how to repay it
• Not caring about repaying debts
• Taking on more and more debt without being responsible
• Not caring about the consequences of falling behind on loan repayments
• Buying now and dealing with the debt later

What causes you to spend money and have an unhealthy attitude towards debt:

• Under emotional stress
• Your erratic spending habits
• Feeling low or depressed
• Peer pressure
• Status symbol
• Marketing hype
• Keeping up with others

Who is someone that you trust who could help you change your attitudes to debt:

• Family members
• Work colleagues
• Friends
• Your partner / spouse
• Church members
• Counsellor
• Money coach
• Bank manager
• Loan broker
• Financial planner

Positive Attitudes To Debt

A positive attitude towards debt can have a major influence on the financial success of a person. With the right approach to handling debts and financial management this will ensure that money is not wasted unnecessarily on high costs associated with the privilege of borrowing money such as interest.

These positive attitudes are:

• Planning before borrowing money
• Researching loans and products
• Being able to afford the debt
• Being committed to repaying the debt
• Wanting to clear the loan sooner
• Trying to avoid borrowing money
• Staying on top of the finances
• Becoming financially educated