On Reddit, a user recently shared their regret over a high-interest car loan. While they’d been faithfully making payments, they felt frustrated by the extra cost the interest had added over time. They asked the Reddit community if they should pay off the remainder of the loan in a lump sum to put the whole experience behind them.
While some users recommended sticking to the original payment plan, many others agreed that paying off the loan would be a wise move. Their advice? Learn from the mistake, move on, and focus on better financial decisions going forward.
Making a money mistake — whether it’s a bad purchase, accumulating debt, or blowing through savings — is something nearly everyone goes through at some point. Asked on Reddit: How Do I Recover From a Big Money Mistake? So, how do you bounce back? We spoke with financial experts to get their take on how to recover from a financial misstep. Here’s what they had to say:
1. Don’t Dwell on the Mistake
It’s natural to feel frustrated about a financial mistake, but obsessing over it doesn’t help, says Brenton D. Harrison, a certified financial planner and host of the “New Money, New Problems” podcast.
“Fixating on a mistake takes up energy and mental space that could be better used elsewhere,” Harrison explains. Instead of replaying the mistake in your mind, he suggests focusing on how you’ll approach things differently in the future.
Harrison shared a personal experience: He and his wife almost bought a rental property in Nashville a decade ago. While they ultimately decided not to purchase, they regret not making the investment now that property values have skyrocketed. However, he doesn’t dwell on it. He says, “I actively avoid driving near the property, because it doesn’t help me.”
The same principle applies to financial regrets. If you regret a pricey purchase, for example, consider putting the item out of sight (literally or figuratively). For car loans, paying off the loan could stop the constant reminder of the past interest payments.
2. Undo the Mistake (If You Can)
If the mistake was a purchase that you now regret, returning it could be a way to undo part of the damage, says Mykail James, a financial educator based in Washington, D.C.
“Most things can be returned. Don’t be embarrassed about it; they have return policies for a reason,” she points out. Even if it’s a non-refundable purchase, like a concert ticket, you might be able to sell it and recoup some of the cost.
For the Reddit user’s situation, it’s possible they could sell the car and use the proceeds to pay off the remaining loan balance — or at least part of it. If returning or selling isn’t an option, James suggests accepting what’s done and doing better next time.
3. Create a Recovery Plan
When dealing with a more significant financial setback, like high-interest debt, it’s essential to have a structured plan for getting back on track.
“Set a realistic repayment schedule that works with your budget,” Harrison advises. Whether you use the debt snowball method (paying off the smallest debt first) or the debt avalanche method (tackling high-interest debt first), the key is finding an approach that keeps you motivated.
However, Harrison cautions against getting so focused on paying off debt that you neglect other important financial goals, like building an emergency fund.
“One mistake I see often is people get hyper-focused on paying down debt and put so much money toward it that they don’t have enough saved for an emergency,” he says. Instead, strike a balance — pay down debt while still leaving room for savings.
Recovery might take time, he adds: “If it took years to get into debt or damage your credit, Asked on Reddit: How Do I Recover From a Big Money Mistake? it could take years to improve it. Set realistic expectations and be patient.”
4. Learn From the Experience
Once the immediate recovery is underway, think about what you can learn from the mistake, Harrison suggests.
Before you make another big financial decision, ask yourself: Was this impulse-driven? Was I trying to keep up with others?
“Identify the root cause of your mistake,” Harrison says. “If you made an impulse buy, Asked on Reddit: How Do I Recover From a Big Money Mistake? Make a mental note to give yourself more time to think things through next time. If you were motivated by comparison, remind yourself that financial success isn’t about matching others’ spending habits.”
It’s important to recognize that, sometimes, no matter how careful we are, mistakes still happen. The key is to move forward and not dwell on the past. As Harrison says, “Dust yourself off and keep going. There’s no point in staying stuck in regret.”
5. Put Your Financial Habits to the Test
Finally, testing new habits is a great way to prevent future mistakes. Whether it’s creating a budget, regularly checking your credit score, or automating savings, building healthy financial habits can provide more peace of mind and reduce the likelihood of making the same mistake again.
If you’ve made a large mistake, it’s the perfect time to start fresh and take small, consistent steps toward better financial health.
Takeaways:
Recovering from a money mistake doesn’t have to be overwhelming. Here’s a quick recap of the experts’ advice:
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Don’t fixate on the mistake. Focus on moving forward and learning from the experience.
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Undo the mistake if you can — return the item, sell it, or work toward resolving the issue.
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Create a recovery plan that balances debt repayment with emergency savings.
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Learn from the experience by identifying what led to the mistake, and set goals to avoid repeating it.
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Test new habits that can support long-term financial stability, like budgeting, saving, and checking your credit.
Everyone makes mistakes. What matters most is how you recover and apply the lessons learned to future financial decisions.
