The Worthy You - Debt Identity

“You are keeping you in debt. Read it again.”

I have a question for you: How do you relate to your debt? Is it with shame, guilt or even hatred towards yourself? Or maybe you think to yourself, "I already owe x number of dollars, what's another $100 if I buy that thing I really want." How you answer this question is very important because what we hold in our mind is the action we take on the outside. If either of the examples listed earlier resonate with you, your continuous struggle with debt has very little to do with the amount of money you make and everything to do with the mindset you hold towards your debts.

Paying a monthly amount towards your debts while also holding a belief that a debt-free life is impossible is going to result in behaviours that keep you in debt. Behavoiurs such as paying off your debt only to build it right back up again or convincing yourself that you’re already in debt so what’s another (insert dollar amount) added to the balance. Or even ones that have you you avoiding your debt altogether so you don’t even know how much you owe.

Debt does not have a linear narrative. It’s not just about taking an action (you incurring debt) and using another action (paying towards the debt) to cancel it out. Debt has different levels and each one is unique to every individual. The first level is the identity level, how you identify or relate to debt. This goes back to the question I asked at the very beginning. Next comes the emotions we hold towards our debt, this includes all of the shame, anger, frustration etc. These two levels together are what result in the actions that will either help you or hinder you from being debt free. Low vibrating actions (once that stem from negative emotions) will never attract the abundance you need to pay off your debt.

To shift your mindset, and the emotions and behaviours that stem from it, you have to first understand and uncover the identity that is driving your debt. What is the one (or multiple) thoughts that continue to fuel the actions that prevent you from being debt- free or even envisioning that life for yourself?

It might include:

Shifting how you spend your money
Uncovering your debt stories
Avoidance
Wanting to get out of debt but no matter how hard you try, you just revert back to those old habits and behaviours.

To uncover your debt identity, answer the following questions:

What money stories do I hold around debt?
How are my current money stories impacting my financial behaviours and actions around debt?
Do I hold any guilt, shame, embarrassment or resentment around debt? What is causing these feelings?
What is the debt identity of my future financial self?

Once you’ve uncovered your current and future debt identity, list all of your current debts including balance outstanding and the interest rate. The first step to eliminating your debts is to see and know what they are.

Head to 20 ways to reduce your debt for immediately actionable steps you can take to become debt free. Try to take 1-3 actions this week.

TAKE THE MONEY PERSONALITY QUIZ TO FIND OUT YOUR EXACT MONEY PERSONALITY TYPE.

money personality quiz