Credit and charge card debt has doubled over the last decade in Singapore. High-interest debt, for instance, personal loans and credit cards, comprise more than 20% of household liabilities. While there is a lot of practical advice on how to get rid of debt, it generally discounts the psychological toll it takes.

The right thing to do is to change your mindset, acknowledge your debt, and control your spending. Instead of getting a personal loan from a bank, think about a payday loan from a moneylender. Here is how to change your mindset to get out of debt.

Get rid of the smallest debts first

Traditional advice might recommend focusing on major debts like mortgage first. Research now says that paying off one’s smaller loans first can motivate you to tackle bigger debt. The disadvantage with starting with bigger debts is debt fatigue, which may demotivate and wear you down.

Experts contend that paying debt off is the test of your mental strength, and short-term goals should be your focus. A loan from a moneylender is easier to pay since lenders do not lend you large amounts of money.

Replace jealousy with productivity

Competing with your friends, colleagues, or relatives on material achievements leads to jealousy. It makes you take hasty, and often rash, decisions and bite more than you can chew. Instead of racking up credit card debt by buying fancy gadgets and expensive clothes, you should work for it. If you are envious of someone’s success, motivate yourself to raise your productivity. Ask them career advice and have healthy competition with your peers.

Do not blame others for the debt

Almost everyone finds it easy to blame others for their financial problems and debt. You could think it was your former partner who made excessive credit card purchases. Borrowers also tend to blame banks for ‘luring’ them with credit. This attitude is destructive and keeps you from paying off your debts. Even if it wasn’t exactly your fault, review what else you could have done to safeguard your finances.

Find avenues for extra income

No matter how less you are spending, frugality helps only to a certain extent. It is earning more money that will help you significantly reduce your debt. However, if you are not self-employed, there is a limit to how much you will earn. Moreover, it is hard to find extra time for a side gig. The trick, then, is to become resourceful. You can consider renting out your property and moving into a more modest accommodation. If you want to start a business, get a small business loan from a moneylender, since they will offer you flexible terms of repayment.

Don’t underestimate an emergency fund

Successful debt resolution requires an adequate emergency fund. Even if you are diverting your extra income towards debt repayment, an empty emergency fund will make you use your credit card for any emergency situations. Soon, this turns into a vicious cycle, making debt repayment almost impossible. Split up extra income and allocate a part of it to your emergency fund.