Avoid The ‘Pay, Spend, Pay’ Pattern To Beat The Debt Cycle

Avoid The ‘Pay, Spend, Pay’ Pattern To Beat The Debt Cycle

Most of us want to get out of debt as soon as possible. Sometimes, in trying to rush it, we overextend ourselves and end up making things worse. Phroogal founder Jason Vitug warns against the “pay, spend, pay” cycle.

Photo by Morgan

In an interview with LearnVest, Vitug talks about his own debt experience. He explains that it’s possible to overpay your debt payments:

Vitug became caught up in what LearnVest refers to as the “pay, spend, pay” cycle, when well-intentioned debtors excessively overpay their loans or credit cards in order to help unburden themselves of debt faster. But, in doing so, they may deprive other areas of their budget — and may often run up their credit cards yet again because all of their cash is going toward loan payments.

The article likens it to yo-yo dieting, which involves losing a massive amount of weight, but then putting it all back on, and then losing it again. Instead of a lasting change, your impulsive behaviour keeps you stuck in a cycle.

For tips on how to break the cycle, check out LearnVest’s full post.

The Common Debt Mistake You Can’t Afford to Make [LearnVest]


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