Being in debt is an emotional issue for many but especially for the young. This can lead to a term known as "financial phobia".  These people procrastinate and when they do think about their finances it makes them feel guilty and anxious. Many also find money management dull and boring and again this tends to be more predominant amongst the young and those in low income brackets.

People whilst understanding for example what APR stands for have absolutely no idea of the technicalities of this and those who are less astute financially tend to borrow on the basis of lower payments over longer periods of time. It's much easier to understand the basics of a loan if the amount to be repaid is apparent as opposed to the APR rate.

Other research proves that people are much less likely to spend heavily if they are using cash. One of the negative aspects of using a credit card is the fact that you don't feel like you are spending real money so the pleasant feeling you get when paying for something with cash becomes detached or disconnected. The unpleasant feeling returns when you are faced with your hefty credit card statement at the end of the month. So why not try to leave your credit cards at home unless it is absolutely imperative that you have to have them with you.

Many debt counsellors state that people blame the ease and accessibility of borrowing for the predicament they find themselves in.  The essential first step is to acknowledge responsibility for your actions. The second step is to prioritise spending to stop impulse buying, and allow you a cooling off period to do this. The final step is the idea of money management which may include consolidation, getting rid of or avoiding credit cards and perhaps allocating funds into various accounts to make it more difficult to spend.