Trapped by Money: Why Financial Problems Aren't Just a Lack of Funds?

Financial problems are one of the most painful topics in modern society. Being in debt, the inability to pay bills, and constant anxiety about the future are all familiar to many. But is a lack of money really the main reason for a black streak? Or is it just a symptom of deeper issues that we don't want to notice?

From a psychological perspective, money rarely acts as an evil in itself. Rather, it is a kind of indicator. How we manage our finances reflects our attitude toward ourselves, life, and the world as a whole. Financial difficulties aren't just an empty wallet; they're also a source of great stress, shame, and hopelessness. A person who finds themselves in debt often feels trapped with no way out.

The Root of the Problems: The Psychology of a Financial Crisis

To get out of debt, it's not enough to simply find an additional source of income or cut back on expenses. You need to understand what led to this situation. Often, it's not so much external circumstances as internal psychological attitudes and behavioral patterns. Let's look at some of them:

Impulsive spending. We often buy things we don't need to quiet our anxiety, compensate for a lack of emotion, or simply cheer ourselves up when we're sad. This kind of "shopping therapy" only provides temporary relief, which is soon replaced by an even greater sense of guilt and financial instability.
Avoiding reality. Many people don't keep a budget, are afraid to open bills, and ignore debt reminders. This is a classic avoidance mechanism that only makes the problem worse. Instead of facing difficulties head-on, we hide from them, allowing them to grow.
Low self-esteem. Sometimes we live beyond our means to impress others, prove our worth, or live up to a certain status. The need for approval and external validation makes us spend money on expensive things we can't actually afford.
Victim mentality. Some people get used to being "victims of circumstance" and shift the responsibility for their financial situation onto external factors—the government, their employer, inflation. This approach robs them of the ability to act and change their situation.
Financial illiteracy. The lack of basic knowledge about how to manage money, plan a budget, invest, and save is one of the main causes of debt problems.

Understanding these psychological factors is the first and most important step on the path to financial freedom. By realizing that the problem isn't just about money, but about our relationship with it, we gain the opportunity to truly change our lives.

How to Get Out of Debt: Practical Steps

Getting out of a financial crisis requires not only a change in mindset but also specific actions. Here are a few practical steps to help you start your journey to financial recovery.

1. Conduct a Full Inventory

Before you do anything, you need to know your exact financial situation. This can be unpleasant, but without this step, all further actions will be ineffective.

Create a list of all your debts: loans, debts to friends, fines. Note the amount, interest rate, and monthly payment for each obligation.
Analyze your income: calculate all sources—salary, side jobs, passive income.
Analyze your expenses: for one month, write down every single expense. This will help you see where your money is "leaking." You'll be surprised how much money goes to non-obvious things—coffee to go, subscriptions, impulsive purchases.

This analysis will give you a realistic picture of what's happening and allow you to make conscious decisions.

2. Create a Budget and a Debt Repayment Plan

After you have the full picture, create a realistic budget. This doesn't mean you have to give up all your pleasures. The main thing is to plan your spending. Allocate funds for mandatory payments, food, and transport, and only after that, for entertainment. As for debts, there are a few strategies for paying them off:

The "Snowball" Method: start by paying off the smallest debt while making minimum payments on the others. Once one debt is closed, add the amount of that payment to the next largest debt.
The "Avalanche" Method: first, pay off the debt with the highest interest rate. This strategy allows you to save more money on interest in the long run.

3. Look for Ways to Increase Income and Decrease Expenses

Obviously, the more you earn and the less you spend, the faster you'll get out of debt. Explore opportunities for side jobs, freelancing, or monetizing your hobby. At the same time, look for ways to cut non-essential expenses—re-evaluate your phone plan, cancel unnecessary subscriptions, cook at home instead of going to cafes.

4. Don't Be Afraid to Ask for Help

Financial problems can cause a feeling of shame, and many are afraid to talk about them. But remember, you're not alone. Seek advice from a financial advisor, lawyer, or psychologist. Perhaps refinancing, restructuring, or a loan holiday you didn't even know about would be right for you. Banks are willing to be accommodating if they see that you're not avoiding the problem but are actively seeking a solution.

5. Work on Your Mindset

Everything you do to improve your financial situation will be useless if you don't change your attitude toward money. Stop seeing it as something that "happens" to you and start seeing it as a tool you can control. Develop financial literacy, read books, watch educational videos. By changing your internal attitudes, you create a solid foundation for long-term financial well-being.

Financial difficulties can be both the cause and the consequence of a black streak in life. But it's important to remember that they are not a sentence. They are merely a signal that it's time to change something in your approach to life and money. This is the only way to not only get out of debt but also to avoid it in the future.

We've thoroughly explored how financial problems are, without a doubt, a significant but not the only factor during times of life's difficulties. The main thing we've understood is that financial problems aren't random, but rather a consequence of internal attitudes and behavioral patterns. Understanding these causes is, of course, an important step. But what do you do next? How do you translate this knowledge into real changes in your life? I once found myself in a similar situation, where I had a lot of theoretical knowledge, but my life wasn't getting any better. This is what prompted me to create the step-by-step guide «The Labyrinth of Life». This book is a practical guide that will help you not only understand the causes of your failures but also start acting to get out of a «black streak» once and for all and get your life on track. To begin your journey toward change, simply go back to the very beginning, to the «Introduction» section.

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