One way to keep your debt down is to bring a loss frame to your loan statement

Here is a reproduction of a very useful technique to remind oneself to keep the debt figure down. The description is in the context of credit card statement but can be applied to credit facility statement as well.


"Nudge blog reader and Booth School grad Fakhr Mokadem thinks there is a way to reframe credit card statements to keep people from overspending. Instead listing the balance as a positive amount, Mokadem wants to list it as a negative.

For instance, say I have a credit limit of $10,000 and I have spent $8,500 throughout the month. Usually a credit card statement would read: – Credit $8,500. Available balance $1,500. This lets people feel that they have room to spend…

What if I had the following statement: You are -$8,500 and you can go down to -$10,000.

Framing the statement this way makes feel that you should move up to zero, rather than trying to stay below $10,000.

Mokadem says he tries to read his statements this way in order to motivate himself to keep his debt down. “Instead of feeling that I have a right to spend up to my available balance, I feel that I am under water or really in debt,” he says."

Nudge blog · Trying to keep your debt down? Bring a loss frame to your credit card statement

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