Got a Plan to Reduce Your Credit Card Debt? Keep it to Yourself!

Have you ever told your friends or family members about your plans to stop smoking, lose weight, exercise more, learn a foreign language, or achieve some other goal? I sure have. And the reason I told other people about my resolution was to commit myself to following through with it. "If I go public with my intention," I told myself, "I will be more motivated to do it, because I'll be ashamed to fail in front of everyone I've told."

Well, it turns out that was the wrong thing to do. In a recent issue of Psychological Science, a paper titled "When Intentions Go Public" reports on an experiment that found that people who talk about their plans to do something are less, not more, likely to follow through with those plans than people who keep their mouths shut.

"Announcing your plans to others satisfies your self-identity just enough that you’re less motivated to do the hard work needed," writes Derek Sivers, the founder of CD Baby. "Once you’ve told people of your intentions, it gives you a 'premature sense of completeness.'"

From my own experience, I believe this assessment is correct. I kept doing it, though, because that "premature sense of completeness" feels good: immediate gratification over the reward that comes from following through with a commitment.

If you're going make a commitment about your personal finances -- reducing your credit card debt, making an investment, sticking to a budget, starting a new business,  going back to school, etc. --  it might be a good idea to keep the idea to yourself (or at least refrain from sharing it with anyone who won't be affected by your plans) until you've succeeded (or at least until you're well on your way). After that, of, course brag all you want -- you've earned the right.

P.S.: I guess now is not the time to announce my resolution to keep my goals to myself.

Mark Frauenfelder – Editor-in-chief of MAKE magazine and the founder of the popular Boing Boing weblog, Mark was an editor at Wired from 1993-1998 and is the founding editor of Wired Online.

Comments

[kirilov]

I see the opposite effect in different things: I stop drinking, smoking and doing drugs for one month a year, and by telling people, I am putting an extra price on failing. It is one thing (though minor) that helps me stick to it.

[Zack]

With regards to reducing CC debt, it might not be in your best interest to keep mum about how you plan to do it. I'm sure there are people who don't know of the more popular strategies (highest interest rate first, lowest balance first, transfer balances to zero interest cards) and without using the correct strategy it might take longer (and cost them more) to get out of debt.

[Anthony]

Good points.

Staying away from immediate gratification and working towards the long term is a good principle.

Applies to everything.