For some people, debt leads to sleepless nights and anxiety about incessant collections calls. But for others, it causes quieter changes that still leave them drowning in bills without a clear way out.<\/p>\n\n\n\n
Understanding the ways in which your debt can affect the way you feel, think and act may give you perspective that\u2019ll help you conquer it. Here are three subtle ways you may be responding to being in debt.<\/p>\n\n\n\n
People who are in debt tend to think in the short term, often because they\u2019re driven by fear, says Gian Gonzaga, who has a Ph.D. in psychology and is the chief data officer at the student loan refinancing company Earnest.<\/p>\n\n\n\n
\u201cFear makes you narrow your decision to the thing that is the most concerning and worrying to you,\u201d Gonzaga says. \u201cThat can actually take away from your ability to think creatively about what other ways you\u2019ll be able to dig your way out of [debt].\u201d<\/p>\n\n\n\n
People with multiple kinds of debt may focus on certain ones, sometimes at the expense of others. Sixty-eight percent of student loan borrowers say they\u2019re focused on paying off obligations such as credit card balances and mortgages before their student debt, according to a new survey<\/a> by NerdWallet and Harris Poll. Nearly half of student loan borrowers surveyed (47%) have missed a student loan payment, including borrowers who have skipped a payment to pay their rent or mortgage (17%) or a credit card bill (13%).<\/p>\n\n\n\n To avoid potential late fees and dings on your credit report<\/a>, make sure you\u2019re paying at least the minimum amount due each month on all your debts.<\/p>\n\n\n\n Many borrowers prefer to repay their smallest debts first<\/a>, even though they could save more money by prioritizing their debts with the highest interest rates, according to a 2011 study<\/a> published in the Journal of Marketing Research. Smaller debts may seem more manageable, or completely paying off a small debt seems more attainable, than paying off the full loan balance, the study says.<\/p>\n\n\n\n It\u2019s not unreasonable to want to focus on your smaller debts first, though. The motivation you gain by paying off those debts could increase your productivity for repaying the remaining, larger debts, according to a 2015 study<\/a> published in the Journal of Marketing Research. However, if you\u2019re able to muster the motivation on your own, it\u2019s best to put your extra money toward the highest-interest loans first<\/a>.<\/p>\n\n\n\n If you\u2019ve been in debt for a long time \u2014 say, 10 years \u2014 you could experience what\u2019s known as learned helplessness, Gonzaga says. In other words, you may stop trying to become debt-free and instead resign yourself to life in debt.<\/p>\n\n\n\n By not being open to the possibility of getting out of debt, you may miss new opportunities to improve your money situation. For example, student loan refinancing<\/a> has become available only in the last several years, Gonzaga notes. Borrowers who gave up looking for student loan help 10 years ago may not know about that option.<\/p>\n\n\n\n To get out of the learned helplessness mindset and feel empowered to change your situation, try thinking more long term, Gonzaga says.<\/p>\n\n\n\n \u201cFrame things in terms of a future self you want to be,\u201d he says. \u201cThen start thinking about steps to get there.\u201d<\/p>\n\n\n\n Depending on the type of debt you have, those steps may be different. For instance, consolidating your debt<\/a> may help if you have personal loans or credit card debt. If you have student debt, switching to an income-driven plan<\/a> or refinancing may be good solutions.<\/p>\n\n\n\n You have the power to take control of your financial life. If you need help, consider meeting with a credit counselor<\/a> or researching strategies on your own.<\/p>\n\n\n\n This article was written by NerdWallet and was originally published by USA Today<\/a>.<\/em><\/p>\n\n\n\n Teddy Nykiel is a staff writer at NerdWallet, a personal finance website. Email: teddy@nerdwallet.com. Twitter: @teddynykiel<\/a>.<\/em><\/p>\n\n\n\n The article 3 Sneaky Ways Debt Can Change How You Think<\/a> originally appeared on NerdWallet<\/a>.<\/p>\n\n\n\n2. Opting for simplicity over savings<\/h3>\n\n\n\n
3. Resigning yourself to your debt<\/h3>\n\n\n\n
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