5 Steps to Break Your Problematic Borrowing Streak

Debt can be problematic if you find yourself in a cycle of borrowing and borrowing. If you owe a loan money lender, have credit cards, and even more loans to pay off existing loans, you have a problematic borrowing streak.

To break out of this vicious cycle, here are five steps you can take.

Live below your means

The best way to end problematic borrowing is to spend less than what you earn. This is also known as living below your means. You will always have extra money this way, which you can use to pay down your debts.

Living below your means also forces you to spend on only the most important things. Other expenses can take a backseat to make room for the essentials.

Borrow only the amount you need

A huge temptation when taking out a loan is borrowing more than what you really need. This will only set you up for more financial difficulty as you need to pay off a larger debt.

Instead, be disciplined and borrow only what you need. This way, you will have a smaller debt to pay, and interest will be lighter too.

Keep only one credit card

Having more than one credit card can cause more trouble than they’re worth. The more credit cards you have, the more likely you are to spend impulsively. Also, the greater the risk of buying things you do not have the means to pay for.

For this reason, it’s best to have only one credit card. You can better keep your spending in check. Also, having only one credit card bill to deal with each month gives you more peace of mind.

Most importantly, strive to pay the full amount of your credit card bill every month. This way, you can avoid incurring additional interest on any unpaid balances.

Cut out unnecessary expenses

Do a thorough inventory of your expenses, and often you will find a few things you can live without. For example, you may see from your credit card statement that you have a monthly fee for a gym membership you don’t use. If that’s the case, cancel that subscription right away and save yourself some dollars. Whatever expenses you shave off can go to debt repayment.

Apply for debt consolidation

If you are drowning in debt and need help to get out of it, debt consolidation is something to consider. Here, a bank or lender will buy up all your outstanding debts, pay for them on your behalf, then give you a new loan that lumps all of your previous debts into one.

This way, you can negotiate a repayment schedule and other terms favourable to your financial situation. You may end up paying more in interest, but at least the monthly repayments are now within your budget. Getting out of debt will become easier this way, even with higher interest payments in the long run.


Problematic borrowing can ruin your financial health, but it is never too late. If you have much debt, take these five steps that will help you live a debt-free lifestyle. Escape debt, avoid getting into the same problems in the future, and be on your way to financially security.

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