How Difficult Is It To Break The Behavoir Of Getting Into Debt?

[Singuy]

I listened to this girl on youtube complaining about how hard her life is on the Dave Ramsey plan and this got me thinking. Getting out of debt to her(being on a very strict budget) is like being on a very strict diet. We know that most diet fails because people don't actually change their behavior.

So my question is, how many people do you know have gotten themselves out of debt and then got right back in (I am talking about credit card debt mainly, not business loans or mortgage)? I don't see any articles on this so I'm not sure if this is the only behavior changing endeavor that's actually successful?

[ua_guy]

I don't think it's a single behavior but many behaviors. To break the cycle of debt is easy, and the math is simple, but to change the way one spends money I think is beyond financial counseling. It's about compulsion, personal happiness, and the choices we make in life.

Case in point is a friend of mine from high school who struggled with debt and other things for years. His family life was less than ideal growing up and he developed some really bad habits and compulsive behaviors. He started smoking, he was very insecure and felt he had to keep up with others and impress people with things he bought. He's been going to counseling for about 2 years now since the debt really started to become a problem and he's just starting to change. He feels a lot better about himself and he's making his money go farther, all good things.

A lot of people just say "I'm not good with money" and throw their hands up, but the fact is, most of it's elementary school math and science, things they already know how to do. But it takes a lot of effort and self-exploration to understand why one is bad with money and that's the cycle that needs to be broken--and often it has nothing to do with money at all.

[bjl584]

I listened to this girl on youtube complaining about how hard her life is on the Dave Ramsey plan and this got me thinking. Getting out of debt to her(being on a very strict budget) is like being on a very strict diet. We know that most diet fails because people don't actually change their behavior.

So my question is, how many people do you know have gotten themselves out of debt and then got right back in (I am talking about credit card debt mainly, not business loans or mortgage)? I don't see any articles on this so I'm not sure if this is the only behavior changing endeavor that's actually successful?

From what I've observed it is extremely difficult for someone to change their mindset about money. I have a friend that was faced with foreclosure and bankruptcy a few years ago. Despite his situation, he was unwilling to give up or cut back on certain luxuries. Saying things like, he works hard and deserves this or that. He could die tomorrow, so he wanted to live today. How do you get through to someone that thinks that way?

[clatoden99]

Dave Ramsey’s “debt snowball” has been very successful for tens of thousands of people. His process is to make minimum payment on all debts except the smallest. On the smallest make as much additional payment as you can. Once that is paid off, take the amount you were paying toward the small debt and *add it* to the minimum payment on the next smallest debt. Continue this process and the pay-down amounts increase as each debt is relieved - and it creates a “snowball” effect.

While mathematically paying the highest interest first might make sense, getting out of debt is more of a personal challenge than a math one. Seeing the debts drop and the pay-down amounts increase is very motivating and often helps people continue focus toward the goal.

[MonkeyMama]

So my question is, how many people do you know have gotten themselves out of debt and then got right back in (I am talking about credit card debt mainly, not business loans or mortgage)? I don't see any articles on this so I'm not sure if this is the only behavior changing endeavor that's actually successful?

Pretty much everyone.

& I mean, I notice a lot of, "I got out of debt and its the best thing ever. I will NEVER do that again." Then literally financing a brand new luxury car purchase within weeks or months. Repeat this loop endlessly. I am always amazed by the amounts of denial needed for this kind of debt pattern. I suspect there is an element of addiction or just bot being able to change on some core level.

I wouldn't be surprised is the vast majority of DR followers go right back into debt. The extent of that debt probably varies. & like any diet, I wouldn't expect it to be a complete success on the first go.

[rutgers07]

Not uncommon. Psychologically speaking, debt actually makes sense as most people tend to value current joy and happiness over a possible future happiness. Adding on to that, people are wired to repeat behaviors and patterns. We are not wired to change or adapt. It's a very difficult thing to do.

Buying things creates a similar euphoria for some people as do drugs and alcohol (I'm not in anyway comparing this to addiction). Our brain craves pleasure and joy and actually managing impulses goes against our hard wiring.

[rutgers07]

I listened to this girl on youtube complaining about how hard her life is on the Dave Ramsey plan and this got me thinking. Getting out of debt to her(being on a very strict budget) is like being on a very strict diet. We know that most diet fails because people don't actually change their behavior.

So my question is, how many people do you know have gotten themselves out of debt and then got right back in (I am talking about credit card debt mainly, not business loans or mortgage)? I don't see any articles on this so I'm not sure if this is the only behavior changing endeavor that's actually successful?

That is a great comparison. What really should be advocated is not a "diet" per se as diet implies short-term, but a framework of lifestyle change which carries with it bigger long-term implications. For me, much of this comes down to education. Personally, I was not well versed on the importance of money 30 years down the road as I just expected SS to pay way through retirement. It's unfortunate that by the time people get into and out of high school, debt is so ingrained into their philosophy of life (whether that be due to social pressures, family, low SES) that they are now trying to unlearn 18+ years of one thought pattern.

[97guns]

its not behavior they must break its the need and lifestyle of credit that they must stop, most are too deep and too reliant of credit to even think about stopping, some need credit to service their loans

[vseddie]

I'm 32 and have been debt free (apart from mortgage) for about 18 months. Before then I've had some form of consumer credit since I was 18. My mum had over 100k in credit card debt until it was consolidated into the mortgage.

I was never taught how to handle money and thought what I was doing was normal. Everyone else around me was doing the same thing. Getting 7 year car loans. Going on holidays using the credit card etc.

The stress of all the debt eventually got to me and I worked my ass off to pay it all off and swear to never go into debt again.

But even now I still catch myself looking at cars I can't afford. Getting jealous over the latest motorcycle my mates at work are getting on credit etc. Peer pressure is strong. It's a struggle. But I'm finding as time goes on it is slowly getting easier.

I've almost got my 3 months of expenses saved up as an Emergency Fund. I read forums like this, ERE and MMM to stay motivated. Im starting to find saving fun in a challenging kind of way. Like what's the highest savings rate % I can get lol.

[LivingAlmostLarge]

Super easy like dieting to fall off the wagon and climb back on. I find myself on that stupid diet wagon all the time.

[nadine_doa]

So my question is, how many people do you know have gotten themselves out of debt and then got right back in (I am talking about credit card debt mainly, not business loans or mortgage)?

That would be me.

I was over $100,000 in debt once. It wasn't trivial consumer credit blowing-it-on-expensive-stuff debt; I was trying to keep my business afloat and pay my bills.

I was having a hard time sleeping. I even consulted with a bankruptcy specialist who kindly pointed out that I had an asset I would lose if I declared BK.

So I went to a friend and confessed all. To my eternal surprise, he gave me a big hug and told me he would take care of it all. That night he wrote checks to all the card companies. That night I had the first good night's sleep in years.

I stayed debt-free for a while. But it became obvious as the debt piled up again the problem wasn't debt, it was that I wasn't earning enough money. So I killed the first business and came up with a far better business plan. I'm still running that business today. It has provided myself and that friend with a steady income.

Even to this day I'm incredibly humbled that someone believed in me enough to give me the chance at a better life. A life without debt and a life with him, too. We've been married for eleven years.