The current economic landscape pushes us to be more cautious with our finances. However, more and more people seem to be failing on this because they keep on delaying dealing with their debts.
In a recent article by Bankrate, it was explained why most people avoid checking their credit card statements and balances. They pointed out that this might be the primary reason why it’s causing them to fall deeper into debt.
Dr. Dana McNeil shared her expert views on this. She explains that as humans, we are hard-wired to avoid dealing with what is uncomfortable:
“We know we need to take care of ourselves, budget, plan for the future, build six months of emergency savings, but we prioritize pleasure,” says McNeil. “Then we build up layers of guilt and shame because we know what we should be doing but aren’t. It’s easy to avoid, too. As adults, no one is checking in. Your parents aren’t making sure you’re doing your homework.”
However, she believes that being up-to-date with your debt statements can help you create a better game plan for your personal finances:
“When you look at your statements and see all the debt you need to deal with, you may think you can never go out to dinner or take a vacation again,” says McNeil. “That’s not true. When you know what you have done you can put a game plan in place so you can.”