Psychological profile of the debtor – What character traits will increase the likelihood of bankruptcy?

Is it possible that our character traits cause us to become debtors? Many psychological studies say yes! So what can have the greatest impact on ease of falling into a debt spiral?


What is the psychological profile?

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The psychological profile is prepared by psychologists – specialists who based on the collected information (through interviews and / or observations) drew conclusions on the motives of behavior and decisions made by man. Thus, psychological profiles determine the predisposition of each of us to take certain actions and to refrain from others.


Psychological profile of the debtor

debt problem

In that case, can we talk about the psychological profile of the debtor? Is there a set of common features of people in debt or with a tendency to indebtedness? It turns out that yes!

After examining thousands of people around the world, psychologists came to the conclusion that one can confidently talk about the dominant attributes of debtors. Of course, we fall into debt for many reasons and sometimes they are completely independent of us, such as in so-called debt inheritance. People burdened with other people’s arrears do not have to display the same personality traits as people who have problems with their own debts.


Who is the debtor?

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So what are the typical character traits of the debtor? There are several of them, but they can be closed at several points. In short, such a person is:

  • impatient,
  • undisciplined,
  • hungry for prestige.

Meanwhile, these features do not have to be clearly negative. Each of them can be turned into strength that leads to success, or at least a peaceful life, free from financial problems. It sounds interesting?


The debtor’s impatience

The debtor’s innate impatience does not allow him to wait until the desired good is within his financial capacity, he must have it now! A person of this nature will not gradually save money for an extra purchase – it takes too long. Instead, he will reach for the loan, regardless of the fact that the transaction, in general, will be more expensive, because each installment will be repaid with interest, which can seriously undermine its finances.

How do you turn this impatience into an asset? Instead of borrowing and burdening your budget with receivables, we should make use of this desire to have a job quickly. What can I do to quickly earn a selected purchase? Will I be able to find an additional job?


Debtor’s non-discipline


If indiscipline occurs with a person impatiently, then there is unfortunately a good chance of becoming a debtor – bankrupt. Why? Because the lack of discipline does not allow for systematic postponement and repayment of receivables, and the lack of patience may tempt you to make another purchase in installments or – which very often – to take another loan for a quick repayment of the previous one. It’s so easy to fall into total financial ruin!

Unfortunately, non-discipline makes it difficult for the debtor to control and take responsibility for his own budget. “I need a whip over myself,” they often say, pushing the thought of having to watch over and manage their own money.

Can non-discipline become a positive feature in terms of finance? It is hard to imagine such a situation, but just realizing the problem can help us build a better “me” on it. Knowing how dangerous it is to live without control over your budget, we can motivate ourselves to look for solutions and find strength to work on ourselves and our habits.


Hunger for the debtor’s prestige

Hunger for the debtor

Why is the debtor borrowing so much that he is in trouble? Because he builds his ego on what he possesses and can show others. It’s hard to live with the thought that there is no better car, so he buys a new, more expensive one. He believes that a flat not filled with the latest technology diminishes him, so he equips it with fashionable electronic systems. The dressing room must display at least a few expensive, designer clothes, etc.

If we feel a strong need to show others who we are through what we have, and in addition we are impatient and lack self-discipline, then the probability of bankruptcy is very high.

There is nothing wrong with the desire to raise the standard of living – after all, we all strive to live comfortably. That is why hunger for prestige can become a driving force for us. How much more pleasant it is to listen to the words of admiration for our new car, if we can say that we have earned it hard, than to explain (or hide) that now we still have to pay it back!


Everything in our hands

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Debtors’ problems arise when they stop taking responsibility for their decisions. Things get complicated not by taking out a loan, but by the inability to control yourself and your finances. However, these are skills that can be learned! So if we display one, two or all three character traits of the debtor, it does not necessarily mean imminent bankruptcy. Everything is in our hands!

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