What is debt creep?

Life moves at a fast pace for a lot of us. Sometimes it goes so quickly that you don't have time to check in with your finances. 

When you finally sit down with your credit card statements, you might be in for a shock. You knew you owed some money, you just didn't know it was that much. 

Say hello to debt creep. We'll walk you through what it means—and how to fight it. 

Debt creep defined

There isn't really a set definition of debt creep the way there is with lifestyle creep. When you talk about lifestyle creep, it means the way people tend to spend more as their income rises. 

Debt creep, in simple terms, is a buildup of debt over time—so that before you know it, you have too much debt. 

You might owe money on credit cards, a car loan, buy now pay later financing, medical bills—it all adds up. Debt creep can happen to anyone, in any financial situation. 

How debt creeps up on you

Debt creep doesn't happen overnight. It may take months or even years for debt to reach a point where it overwhelms you. For example, your debt may increase when your expenses go up but your income doesn't. 

When inflation strains your budget, you might charge basic needs like groceries and gas to a credit card. The balance can creep up if you continue to do that but don't always pay the card off in full each month.

Financial emergencies are another culprit. You might need to use a credit card or loan to pay for car repairs or put a new roof on your home if you don't have emergency savings. Even a few minor emergencies can put you in a debt hole. 

And let's be honest, debt creep sometimes happens because of poor choices. That was the case for me in my 20s. 

I racked up $30,000 in credit card debt because I overspent, didn't budget, and didn't fully understand the consequences of paying only the minimum each month. 

Eventually, my debt became so overwhelming, I started to ignore it. I didn't make monthly payments or answer the collection calls.. 

It took getting sued by a creditor to realize enough was enough. I called my other creditors (there were five in total) and offered to resolve each debt for less than what I owed. 

They all agreed, and there were no more lawsuits. I learned a few lessons about budgeting, and I can happily say that I haven't dealt with debt creep since then. 

Fighting back against debt creep

What do you do when debt builds up? 

First, you don't panic. No matter how bad you think your debt situation is, there's a debt solution out there for you. 

Next, you have to stop adding to the debt. This might require you to rework your budget so that you don't need to use credit cards for expenses. A free budgeting app like Achieve MoLO can help you track what you spend and find out where your money goes. 

Now, make a game plan. You’re ready to figure out how to deal with the debt you have. This is where it might help to talk to a debt expert. 

A debt expert could help you look at your situation from all angles and offer solutions. For some people, that might mean debt management or a debt consolidation loan; for others, it's debt resolution or bankruptcy. 

At the end of the day, it's your awareness that matters most. When you're tuned in to your debt and finances, you're in a better position to take control of the situation and make ‌positive changes.