Break the Buy Now Pay Later Debt Cycle
Are you stuck in a rut of credit card, Afterpay, Zip Pay, or buy now pay later debts?
Do you get it paid down a bit and then all of a sudden there’s a reason for buying something again?
Don’t worry, you are not alone. So many people are stuck in this cycle, and it takes a little bit of confidence and determination to flip the cycle and do something differently.
Generally, unless something bad happens, it will be a cycle of “normal” and there’s no reason to stop.
So what can I say or do to help kick you out of the rut?
Three Reasons to Break the Cycle
1. Check Out How Much You Pay in Interest
Look at how much you pay in interest each week or month. If you didn’t have these debts, you would have that as extra cash in your bank.
Even if it’s $30 a month, that’s $360 a year you’re giving away for nothing.
2. What Do You Really Want From Your Life?
Do you want the stress of repayments each week or month? Do you want to continuously transfer money around so you can afford your repayments, or do you want to live a life of stress-free money?
These tiny debts are really stressful, especially if you miss a payment.
3. They’re Killing Your Borrowing Capacity
When you want to go for finance for a bigger loan, these smaller loans will impact your borrowing capacity – even if you’ve paid them out and they’re sitting there waiting for you.
A loan or line of credit that you have available is still counted as borrowed money in the bank’s eyes. That $2,000 Afterpay limit? The bank treats it like you’ve already borrowed $2,000, even if your balance is zero.
Why You Need Confidence
Some of us use the credit card or store credit as a security blanket – having it there “just in case” you need it.
Well, if you’re ready to declare that you no longer need it, give it up. Cancel that debt. Get rid of it completely and see what happens.
Have confidence in yourself that you can get by without the card.
(It wasn’t that hard to get in the first place, was it?)
Determination Is for the Bold
Determination will get you moving far more than anything else.
If any of the above points has inspired you to cut out your debt, then please send me an email with the subject “I am determined” to jodi@wheredidmymoneygo.com.au
If you need an accountability buddy, I can be that for you. I will send a couple of questions that will help you get started, and then I will cheerlead you from the side and do a happy dance with you for every card that you pay off and cancel.
Disclaimer: This information is general in nature and doesn’t take your personal circumstances into account. Always seek professional advice for your specific situation.
