If your debt is increasing or if you just do not feel like you are in control on your financial life, then you need to look at your budget. There may be many different reasons your spending is out of control.
It’s best to figure out the reason for why your spending is out of control now rather than later. It can lead to a stressful amount of debt, high interest fees, late charges, a lower credit score, loan denials, and more. If you are looking for how to apply for a trust deed to get rid of debt, that may be an option as well.
Below are several reasons for why your spending may be out of control:
You think of your credit card as free money.
Your credit card is not free money. Too many people spend as though it is, and that can be a disaster. I have many credit cards (all so that I can earn credit card rewards points), and if I treated all of my credit cards as free money than it would be like I just found over $50,000 of free money.
Except, it’s not free.
You have to pay all of it back, and unless you pay it back each month, then you will have to pay high interest fees and late charges. Your interest fee may be somewhere between 15% to 25%, so you can only imagine how quickly interest and fees can add up.
You should only buy things with your credit card if you are absolutely positive you can pay it back before interest or any fees are accessed.
You spend more money than you make.
If you spend more money than you make, then your spending is out of control. It’s really as simple as that. You either need to work on cutting your budget down, or you need to work on making more money. You will never escape this problem unless you change something about your budget.
You feel like you “deserve” to spend money.
This used to be my problem. I hated my job so I would spend money in order to make myself feel happy. I thought I deserved to spend money on buying myself things since I would have such horrible days at work.
This is not a good idea. Eventually it turns into a vicious cycle and you will have to keep buying yourself more and more stuff. I know this, because it happened to me. One day I just stopped and I realized how ridiculous my spending and everything had gotten. You should figure out why you think you need to spend so much money in order to make or keep yourself happy.
You want to keep up with the Joneses.
You should never buy something just because someone else has it. You will never really know if they can afford an item, and you should not just buy things that you do not even care about. Instead, think about yourself and what actually makes yourself happy.
There will always be someone out there who has something that you have, so there’s no need to get jealous and ruin your finances over it.
Is your spending out of control?
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