How to Solve Debt Ghost Issues: Common Debt Personalities

Debts. Do you feel they are always present, a quiet weight we carry? They just linger in the background. For many of us this can be true, and it can lead the haunting feelings that it will never go away. The house ghost that makes its presence known, at any given time. The weight we feel from these haunting debts often impacts our daily lives, especially our financial mindset and stability. In this blog, I’ll discuss common debt personalities and how to solve debt ghost issues.

The Swamped Borrower is a person who is inundated with debts. They often have multiple accounts from different debt sources. The debts like credit card, personal loan, or student loan debts. For this debt identity you find you relate to the following:

• Constant Increased Stress: There is continual concern about maintaining monthly payments and having enough money each month to cover your other obligations.
• Minimum Payment: Only being able to pay the monthly minimum, which causes extended debt repayment and additional interest expenses.
• Postponing Actions: The common occurrence to postpone or talk about monthly expenses due to high stress.

Your Debt Ghost: The biggest haunt for a Swamped Borrower is the constant fear that the debt will always be present. And there is no way to get out debt. This can create a stop in the ability to repay debts. And once stopped due to feeling overwhelmed, it can make it very hard to move forward and take steps, even small ones, to repay debts.

How to Scare Away:  Debt repayment doesn’t have to last forever, and there are ways to make it easier. Start by listing all your income and expenses, including debt payments. Then, find a reputable financial counselor to review your finances, goals, and debts. Non-profit credit counseling agencies, like Apprisen, can be very helpful.

The Planned Borrower is a person that has a well-thought-out strategy and uses debt as a tool to achieve their financial goals. For this debt identity you find you relate to the following:

• Intended Risk: Before the debt is taken, there is a plan in place for repayment. This ensures the debt is managed responsibly, improving financial health.
• Used to Build Credit: As the debt is repaid, there is a focus on maintaining on-time payments and keeping the balance low and continually paying down the balance on a loan. These are the biggest factors in building credit.

Your Debt Ghost: The biggest haunt for Planned Borrower is overextending on debts. Taking on too much debt, even with a repayment plan, can make it harder to keep up with payments, especially if you’re paying off high-interest debt.  In case of a financial emergency (e.g. job loss or health issue), this can negatively impact on all your finances, including your repayment plans.

How to Scare Away: Consider only taking on new debt when it’s necessary to achieve your goals and make sure it’s manageable. Regularly review and adjust your financial goals, at least once a year or whenever you experience a major financial or life change.

The Uninformed Borrower is a person who gathers debts without the awareness of the long-term financial impact. For this debt identity you find you relate to the following:

• Purchases on a Whim: Purchases are consistently made with credit. Often as an impulsive buy without regard to whether the item is needed or without repayment plan in place for the items.
• Absence of Financial Knowledge: Often there is partial understanding of how using credit affects their credit scores, repayment ability, and overall financial health

Your Debt Ghost: The biggest haunt for an Uninformed Borrower is that their debts can be manageable for an extended period, until they aren’t. It can then become unmanageable very quickly, bringing with it the awareness of bigger financial issues.

How to Scare Away: Begin by acknowledging your debts. Look at your credit statements to see what types of debts you have and notice any spending patterns. Track your expenses and create a spending plan that lists your monthly costs (e.g. rent, insurance, car payments, food, transportation, and debt payments). Finally, focus on a plan to repay your debts.

Just remember, debts don’t have to haunt you forever. Acknowledge your debts and think about your debt personality. With these steps you can then tackle your debt and remove the weight and haunting feeling they cause. Apprisen is here to help you on your debt. Check out our Debt Management Program to help you remove those debt ghosts with lower interest rates and monthly payments.

Did you find this blog on how to solve your debt ghost issues helpful?