Are you a Shopaholic?

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Just because you can meet all your financial obligations, does this mean that you don�t have a problem? Not necessarily. If spending money makes you feel good or lifts your spirits, you may want to look deeper into why you like to spend money.

How do you know when you have a problem with shopping? Do you lie about your purchases or hide them? These are few of the typical signs of an over spender.

Do you buy 100 pieces of an item just because it is on sale? Never mind the fact that you won�t be able to use that many pieces in a lifetime. For most people it is not the items that have significance. It is the quest or thrill of finding a bargain. It may also be the high they feel at the moment of purchase. Going into debt is an afterthought for this kind of shopper.

Whatever a person�s drug of choice is, it is only a temporary substitute for what they are missing in life. Your drug, whatever it may be, will never fill the void causing you have negative emotions. These emotions will usually cause you to repeat your addictive behavior. Debtors Anonymous is the best treatment for this type of behavior. There is a 12-step program for people whose spending has gotten out of control. The members of this fellowship will teach others how to deal with deep seated feelings that have caused destructive behavior. You will also learn how to deal with these feeling without ending up at Walmart.

Just because you can pay all your bills does not mean you are not a compulsive shopper. If you are using shopping to relieve other stresses in your life or find yourself buying 10 pairs of shoes in one shopping trip just to feel better you might want to take a closer look at the root of the situation.

Here are some ways you can start to deal with your compulsive spending. If you find yourself with an excessive amount of debt or if your spending is causing family problems you should start with a visit to a Debtors Anonymous meeting or a debt counselor.

Before you can fix any kind of problem you first have to admit it exists. If your credit cards are maxed out or you can�t get your closet doors closed you probably have a problem. Admitting that you have a problem is the first step.

Analyze your spending habits. Are you a binge spender? This is someone that may not spend constantly, but when they do spend they make it worth their while. Or you may spend consistently going from one credit card to another. Or does your spending consist of buying certain types of items, such as: clothes or computer equipment. Once you determine the type of spender you are you will be one step closer to the solution.

Try to determine what need or emotion your shopping is fulfilling. Are you lonely or angry? You might be trying to relieve stress or get back at someone. You are getting something out of over spending or you wouldn�t be doing it. Determining what feeling is being met will get you closer to dealing with your compulsive spending.

Analyze the amount of time you are putting into this compulsion. This is time that you could be spending on something less destructive. Most addictions take a great deal of time from your family. Try to substitute this behavior with a more positive behavior.

If you follow these simple steps you should be well on your way to changing your behavior. Debtors Anonymous will help you examine why you spend and help you to deal with your emotions. If you have the willingness to change the help is available.

Keeping Your Holiday Debt in Check

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How would you like to avoid the credit card statement shock this January? With some careful planning and some forethought you can do just that. Major credit card companies report a significant rise in credit card purchases between Thanksgiving and Christmas. Here are several steps you can take to keep your spending in check and to pay what holiday debt you have in a timely manner.

Make a list and stick to it. List all the people you are going to buy gifts for and decide how much you can afford to spend for the season. Assign each name a dollar amount and do not deviate from you plan. If you are able to stick to your plan, you will have an anxiety-free January.
Lock up your credit cards. Most of the items you charge can either be paid for in cash or done without. I did not have credit cards for twenty years and did not feel like I was missing out on anything without them. Giving your credit cards a break will help you get your financial situation under control.

Pay as much toward your balance as you can. Credit card companies like people who pay only the minimum. It keeps you in debt longer and as a result you will be paying your creditors more in interest than some one who pays as much as they can towards their balance. If you have $5000 balance and pay only the minimum it will take over 8 years to pay your balance in full. If you pay double the minimum, you can have your balance paid off in about two and a half years.
Buy only what is necessary. Ask yourself if this purchase is really something that you need or are you buying it because it is on sale. If you charge it and don�t pay it off in full when you receive the bill, you are not getting a deal. If it is not an emergency, it should be paid for in cash.

Find extra money. If you are having problems making ends meet, you might consider getting a second job. Another way to increase you income temporarily, would be to sell household items. Ebay can be very lucrative when it comes to subsidizing your income. If you have two cars, you may want to consider getting rid of one of them to add to your net worth.

If you have your credit card spending under control and carry only minimal balances you may want to consider applying for a 0% or low interest rate credit card. Another option is to open a home equity line of credit for emergencies. The interest rates on this type of loan are also very low and it is also tax deductible.

Know when to ask for help. If you feel yourself sinking deeper into debt, don�t be afraid or ashamed to seek help. The sooner you admit things are out of control, the sooner you will be able to develop a plan to get your finances back on track. There are many reliable agencies that will be able to help you develop a debt management plan for repayment of outstanding debts. There is also education available that will educate you on getting out of debt and help you understand how you got there in the first place.

With a little bit of planning and forethought most of us should not be surprised each month when we receive our credit card statements. If you are, it might be time get some help or at the very least make some lifestyle changes.

The Secret to Avoiding Credit Card Debt

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Credit cards are almost a necessity in the 21st century. They are great for emergencies, help you establish credit and are great convenience in today’s fast paced lifestyle. They can also be the source of great financial hardship if not used wisely and properly. That available line of credit can be very tempting, especially when you only have to pay a fraction of the balance monthly. Compound this with a high interest rate and the potential for financial distress becomes very real. Here are some ways to keep your credit card balances under control.

Think of credit cards as cash. If you carry a balance and only make the minimum payment, you will be making payment for a very long time. Credit cards that are used like loans will keep you in debt for a very long time. However, if you use them like cash and pay them off in full monthly, they can be very handy. They will save you from having to carry a large quantity of cash and there are many rewards that can be had through the use of credit cards.

Make your payment by the due date. Credit cards do not have a grace period. Your due date is your due date and if the credit card company does not have your payment in their hands by then, you will be accessed a late fee. Some late fees may be as high as $50.
Keep the number of credit cards you have to a minimum. If you use the cards wisely, one or two should do it.

Avoid purchasing the services offered by credit card companies. They are often unnecessary and expensive.

Review your statement monthly for accuracy. You would be surprised at how many things get billed to you credit card without your knowledge. It is your responsibility to report inaccuracies in to your credit card company.

Never take a cash advance out on a credit card. In most cases, you will be charged a transaction fee. The interest rates on a cash advance will be at a minimum of 20%. Lastly, there is no grace period with cash advances. Interest begins accruing the moment the cash is put in your hand.
If you follow these simple rules, use common sense and live within your means, your credit cards can offer you many rewards and can be a great convenience in your life.