Gambling is a sure way to amass debts and stay in debt. You can even take out loans to support your gambling habit in Singapore. This may look strange, but it is true. The gambling options are endless. There is soccer betting, horse racing, dog racing; and then there are the casinos and their games. Everything keeps you hooked, making think that you can always win the next round. You need a lot of money if you are going to be a serious gambler. It is not advised that you get any type of loan, but a personal loan can assist you. You would still be in debt, but it is a much better option than taking a cash advance on your credit card.

Despite the huge debts that gamblers in Singapore accrue, gambling still isn’t the number cause of debts in Singapore. It isn’t even number two. The major cause of debts for Singaporeans is simple: overspending.

Businesses have fine-tuned the art of parting consumers with their money. Every day something new comes out, with a tagline that makes you think ‘I just have to have that!’ Apple does it all the time and is a prime example of this. You could buy an iPhone 7 and two weeks later the iPhone 7s will hit the markets, and you will still buy it. The features are practically the same; the main difference is the price. You won’t even know how much you are spending till you see your account balance.

Well, it isn’t totally your fault that you can’t help yourself. It is your fault that you can’t exercise stronger control, but there you have it. Reasons, why many Singaporeans are in debt due to overspending, are:

Your Surroundings

The mall. The store. The supermarket. These environments are designed to tempt you to part with your money. You may go to the mall for a Father’s Day mug. You come out later with a hat (it was on sale!), two pairs of shoes, a bracelet, and some designer socks. You didn’t even buy what took you there in the first place.

Supermarkets are super-sneaky with the way they get you to overspend. The concept behind placing dairy products deep inside the store illustrates this. Apparently, one in so many people goes to the supermarket every day for dairy. As they pass the many aisles that lead to the dairy section, they can’t help but be tempted by the items on display.

This is just one-way stores get you to buy extra. They also use music. A scientific observation has it that, during Christmas, festive music is played to get shoppers into a festive shopping mood. This music is also meant to influence your purchase choices and the time you have left until Christmas. In the end, you have been skillfully manipulated to spend more than you planned to.

Whenever you go shopping, make a list of what to buy. This will keep you track, within your budget, and no overspending.

Your Company

The company you keep also determines how you spend. It is normal to want to fit in with your friends or peers, but it is ridiculous to overspend just to please them. You may have friends that earn a higher income than you do, who maintain a certain lifestyle that is bound to put you in debt. Maybe you have friends who love going out but never pay for anything. This kind of company guarantees you going over-budget.

There are two ways to solve this problem if you want to stick to a budget. You can change your friends, or you can explain to them that you can’t spend as much money with them. If they value your friendship, they will respect your wishes and change tactics, to your benefit.

Your Credit Cards

The burgeoning cashless society is a huge convenience to everyone. You don’t have to carry cash around. You just need a credit card and you have access to all your money, and then some. Not having cold cash means you can actually save more and spend less. Right? Wrong!

Singaporeans spend even more when using their credit cards. Even research has proven this to be true. There is a higher chance of you paying for an item or service with your credit card than you buying the same item with cash.

Falling into credit card debt is so easy when you overspend, and getting out of it needs a lot of time discipline. If you are the type who uses up your credit availability and struggles to pay back, stop using your credit cards. Stick to cash. Knowing that you need cash to make purchases should still your spending hand a bit.

Now That You Know That Your Debts Are Largely Due To Overspending, How Do You Quit The Debt Habit?

Falling in Debt –How to Quit

First, and most importantly, you need to budget wisely. If you are the type who prioritizes spending as opposed to saving, you are in trouble. When you get your salary, make a budget that includes savings and expenditure. Save something before you spend. That expenditure needs to be in detail and budgeted to the last cent. Whatever is left after the spending, add it to your savings.

While you are still young, you need to be thinking about retirement. Overspending now will rob you of a peaceful retirement in the future. Start accounting for savings and spending even before you get paid, and remain firm in the financial boundaries you have set for yourself.

Once you have settled that, you should create a debt repayment strategy. You have to clear your accrued debt before your savings can look respectable. Basically, a good repayment strategy requires you to pay back as much as possible in the shortest possible time.

Therefore, you can set the amounts you want to repay, with time intervals. Like the minimum every week. Before you know it, you will be out of debt. Plus, overspending will be gone.