3 min read

ADHD and Credit Card Debt

David DeWitt, CFP® : Apr 5, 2022 11:55:05 AM

credit card debt

I'm going to come right out and say it. Like forks and an outlet, credit cards and ADHD are two things that do not go together. Having ADHD makes you vulnerable to abuse them because they are designed to tempt you. That’s right. The system is rigged, and they (the banks) are counting on you to get sucked in. And they are good at the game! Like a drug dealer, banks know exactly what to offer with incentives like:

Bonuses
Free cash back
And no interest!

All-in-one easy application! Or, even better, offered at checkout at your favorite store. Saving 25% on that purchase that was questionable in the first place? Seems like a no-brainer.

You will have no interest when you pay it off, which you have every intention of doing as soon as you get home. But then you remember that you just saved $225 at Target, and you are going to find somewhere to spend that money. Because you have ADHD, something shiny will probably distract you before you pay off that bill.

The only way credit cards work is if you pay them off every month. Every single card. Can’t do this? Welcome to the club.

Why is debt bad?

The average American is $90,000 in debt, ¹and we are convinced that this is normal. But debt is not a natural part of life. And it is literally bad for your health. People who have debt are more likely to experience:

Migraines
Muscle pain
Back pain
High blood pressure
Heart attacks

They also have perceived stress levels 11.7% higher than average². Feeling this way is not normal.

The Bible even talks about debt. Proverbs 22:7 says that “The rich rules over the poor, and the borrower is slave of the lender.”

When you have debt, you are a slave to the banks. Debt:

Takes away your freedom
Takes away your health
Affects the way you perceive your world

I’m here to show you how to take back control, and how to live a life where your money moves you towards your ultimate ‘Why’. (Don’t know what that is? Check out my free ebook, this blog, or this podcast.) It’s time for you to be free of financial slavery.

My favorite path to freedom?

Snowball Debt Method

There are a lot of methods for paying down debt. Because we have ADHD, this is my favorite way. The premise? Pay off your lowest debt first. Small successes build momentum!

Add up all of your debt.
Take a portion of the “extra” from your budget (see this podcast and this blog for more) and apply it toward the smallest balance debt.
When that is paid off, take the amount you were putting towards the paid-off card (the minimum due AND the extra from your budget) and apply it to the next smallest debt.
Keep going until the debt is gone!

Get it? You start small and gradually work your way up. A snowball, rolling down a hill.

This method is helpful with ADHD because you don’t have to wait long to see your success. Momentum is key!

Sounds simple? It is. The tricky part is that you have to stop incurring debt for this to work. That’s right. No more mileage cards. Or Target cards. Or low-interest-rate cards. Take a deep dive into why you incurred debt in the first place. Check your money mindset. Remember your ‘Why’.

And take action.

Cut up your cards.
Lock them away and give the key to your accountability partner.
Freeze them. Literally. (Fill a bowl halfway with water and freeze it, put your cards on top, fill it the rest of the way with water, and freeze the whole thing).
Take all of your cards off all of the sites that you buy things from. Yes, even your Apple Wallet.

Get creative. When you find a loophole, close it.

The most important thing? Be gentle with yourself and don’t give up. Turn it into a game. Celebrate the successes; from the smallest paid off card all the way to the end.

You’ve got this.

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