6 Kinds of People Who Find Themselves in Debt

If you’re affected by the coronavirus because of recent unemployment or a loss of job security, you could be more vulnerable than you realize. The lockdown is making many people realize not only that they lack basic homemaking skills, but that their financial savvy could use a little work as well.

If resolving debt and reclaiming your financial situation is on your mind, you need to know the kinds of behaviors that make your situation worse. There are commonalities to all personalities that have trouble with financial stability, but knowing the main traits can help you recognize and avoid them in yourself.

  1. Financially challenged

There are many subtler personality types whose traits make them less able to secure a debt-free financial situation. However, being financially challenged is its own personality.

It comes with not being able to form a budget because you can’t prioritize or plan ahead. If you can’t tell the difference between a necessary expense (bread) and an unnecessary one (Animal Crossing), then you need to recognize this behavior before it puts you into debt.

Let go of name brand clothes and start looking for deals on the things that you need. Recognize a fixed expense like your bills as having a priority over your Netflix account.

  • Living in the moment

Many people that find themselves in debt can’t help but live in the moment. They buy impulsively without thinking about the consequences. If they want something or even feel that they need it at that moment, they will spend money that they don’t have.

This is also true of being lulled into a sale situation where you convince yourself that something is more valuable to you because it’s on sale. If you didn’t think of it yourself, you probably shouldn’t buy it on a whim if you’re in tough economic straits.

While some mental disorders can exacerbate the spontaneous buying behavior of certain personalities (such as bipolar disorder), many people are simply impulsive.

  • Not being able to save

Without a savings account, you won’t have a safety net for when you need it, whether that’s for a doctor’s visit or a surprise debt payment. It’s a certain personality type, however, that is unable to put anything away for their savings each time they get a paycheck.

Regardless of your financial position, any money that comes your way should have a little leftover for a savings account. If it doesn’t, then you need to find different work or reduce your expenses.

  • Taking random advice

Some people are vulnerable to being influenced to make poor financial decisions. This means buying products when the TV tells you to or investing in a company when your friend convinces you that it’s a good idea.

The type of person who will jump with their financial security in tow over something as insignificant as a TV ad has a personality that makes it difficult to reduce and manage debt.

  • Unsatisfied with life

If you aren’t satisfied with your life in terms of the way you look, the house you own, the car you drive, or the things you have, you could be vulnerable to accruing more debt. This is because it’s easy for you to be convinced by product marketers that they have what you need.

If your personality allows your self-image to get wrapped up in the things that you buy, you may be vulnerable to products and services that could hurt your debt situation in the long run.

  • No goals

When you take out a loan, you should be making a plan on how to pay it off. Debt is supposed to be a scheduled repayment, not a permanent state of being.

However, those without clear goals for both their finances and their life may find it difficult to get out of debt. If you don’t know how to set small, gradual goals for yourself or get easily lost in a big picture that seems futile, you could struggle with repaying your student loans, credit card debts, or other money that you’ve borrowed.

The Takeaway

Having a personality that makes debt management difficult can be frustrating in a time when financial stability is uncertain. If you recognize these traits in yourself, such as being quick to spend based on random advice or being unsuccessful in making a manageable expenditures budget, your debt can’t change unless you change your thinking.

Recognition of your problem  can lead to a fix if you take the right steps into a more secure future.