Shopping and overspending has been nationally recognized as a very real and serious addiction.
Resources have determined the average national consumer debt is estimated to be $11.8 TRILLION dollars, and steadily climbing.
Here are 4 recognized bad spending habits that contribute to a heft percentage of the national consumer debt..
-IMPULSE/EMOTIONAL SPENDING
Impulse spending may be one of the biggest threats to our bank accounts. Really though, who wouldn’t think twice impulsively about that brand new flat screen TV for 50% off! However, even though it may sound like a steal, is it really a necessity? If you already have a working TV at home, why not put the money you would have spent into your savings and plan a vacation, something the whole family could enjoy, or use it to pay down past or current debts.
-CHARGING ON CREDIT
This is where the true horror of credit cards start prevailing. To many times have we received credit reports with TONS of credit card debt that ended in a charged off account because of.. can you guess? I’ll give you a hint…👆👆…impulse spending. When we impulse buy, often times we don’t have the cash to pay it outright, so we resort to the plastic card. If mishandled credit cards can be the absolute death to your credit score. Don’t get me wrong, credit can be (if used responsibly) one of the best boosters to your credit score, but if we are using credit to pay for something we CANNOT afford, then we run into serious problems.
My advice? Sure, put a purchase on credit, you may get some awesome perks or airline miles by doing so, but the minute you walk in your door, PAY THE BILL right away as your revolving debt ratio accounts for 30% of your credit score! Not only will you have an astounding payment history by doing so; you will be able to maintain your credit WHILE reaping the benefits of credit card perks!
-SPENDING MORE THEN YOU HAVE/MAKE
This is probably one of the worst habits consumers have developed.
Rule of thumb, if you don’t have the cash; then why are you considering it?
-PAYING DEBT WITH, WELL… DEBT
I cannot stress how important it is NOT TO PAY YOUR DEBT WITH DEBT!
While it is important to maintain timely and monthly payments, if you are experiencing a financial setback, and are finding yourself unable to even make the minimum payments there are other options! There is footwork involved, but it will be well worth the effort.
Now were not saying theres no room for mistakes; we’ve all fell victim to poor spending habits and unwanted debts, but recognizing and eliminating the source of the problem will be the best investment you could possibly make for your bank account.
Are you ready to start your path to a brighter financial future?
Reach out to us at 1(800)216-2725 to see how we can help!