Business debt, personal debt… It’s all the same beast. And before you roll your eyes or click away because even if you don’t have debt right now, stick with me. You might be in that position one day, and this will prepare you. Plus, if you’re already in debt, this will probably (hopefully) flip the way you think about it.
Debt is a Tool, Not a Moral Failing‼️
Louder for the people in the back. Debt gets a bad rep. We attach shame, guilt, and embarrassment to it… Like being in debt automatically means you’re “bad with money” or “irresponsible”. That’s rubbish.
Debt is just a financial tool. The same way a mortgage helps you buy a house or car finance helps you get on the road, debt can help you grow your business or simply get you through a tight month.
I’m a financial advisor, and I have debt. £4,330 on my business credit card, to be exact. And I’m fine with it, because it was a strategic choice when my cash flow couldn’t keep up with my growth plans. Sometimes business requires spending before the revenue catches up.
Why You Keep Getting Back Into Debt
What if you’re in a cycle of getting in and out of debt? You’re probably focusing on the wrong thing. You’re trying to fix your spending, when your spending is actually just a symptom of a deeper problem.
If you’re constantly dipping into debt, it’s not about needing to “try harder” or restricting yourself more… In fact, restriction often triggers your brain’s scarcity alarms, which makes you spend more.
Whether it’s boredom scrolling, a little treat for a 10-minute dopamine hit, or using debt to cover something unexpected, the real problem isn’t the purchase. It’s that you don’t have the right buffers or systems in place to absorb life’s curveballs.
The Dopamine-Spending Cycle
Our brains crave dopamine, especially when we’re stressed or in scarcity mode. That’s why you convince yourself that the constant spending will solve everything.
In the moment, spending feels like relief. Later, the shame spiral kicks in. Rinse, repeat. The only way out is to break the cycle by tackling the root cause, and not by shaming yourself into cutting back (we don’t do money shame here).
The Real Way to Get Out of Debt (and Actually Stay Out)
Stop obsessing over paying off your debt first. Instead, focus on building savings.
Yep you read that right. I know that seems impossible, and interest rates are killer, but hear me out.
- Pay the minimums on your debt to avoid unnecessary interest.
- Start building a “breathing fund” of £500–£1,000. This isn’t an “emergency fund” with rules and guilt attached… It’s cash that gives you wiggle room when life inevitably costs more than you planned.
- Once that cushion’s in place, then throw the extra money at your debt.
This breathing fund is your safety net. It means when the unexpected happens (forgotten bills, birthdays, broken car) you’re not running straight back to your credit card.
Why This Works Long-Term
When you prioritise savings first, you remove the need to keep dipping into debt. You also train your brain out of constant scarcity mode, which makes it easier to make smart financial decisions.
I’ve had clients who had been in debt their entire adult lives try this method, clear it, and then, over a year later, still not have a single penny back on credit. Because once you fix the underlying problem, the debt takes care of itself.
All the juicy info from this blog post was taken from my podcast: Fund The Damn Life.
Want to work with me? Check out my services here.
Emilie x
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