Creating a plan to get out of debt is the starting line. Staying out of debt is how you win the race. There are several reasons why you get into debt. You might be trying to live a lifestyle above your means. You may have had an emergency that wasn’t planned for. Or, you might simply be shopping too much. This doesn’t just have to be at the mall. You can be overspending online or even at the grocery store. In order to break this habit, it’s important to examine why you shop too much in the first place If you want credit repair, you need to stop adding to your debt.
How We Get Into Debt and Then Need Credit Repair
Shopping Addictions and Credit Repair
Compulsive shopping, like other compulsive behaviors, is a behavior somebody takes part in frequently. Some compulsive shoppers get a sense of accomplishment about finding things at good prices. Some shop as a passive-aggressive way of getting back at someone with whom they are in a relationship. For some, compulsive shopping is an addictive behavior similar to drinking, substance abuse, and gambling. And some keep trying, and ultimately failing, to seek happiness in buying things.
Getting out of the compulsive shopping habit is difficult to break alone. If this is your issue, try finding a support group, such as Debtors Anonymous, or seek out a therapist experienced with addiction issues.
Let’s Go Shopping!
Shopping malls have grown into entertainment spots. Try going to the American Dream mall or Mall of America and not spend anything! Better yet, don’t go to those malls and don’t even click on their links! The point is that malls have become more than just a collection of stores. So, now you go there with your friends to watch a movie, play miniature golf, ski, eat, and, oh yes, shop. If you are serious about getting out of debt, these may be places you simply have to avoid. Otherwise, you might think you need to buy something to remember the experience. If drinks are involved, inhibition gets lowered and you might be buying things you wouldn’t if you stuck with non-alcoholic beverages. Friends often enable friends when it comes to buying something. Sometimes, friends do this because they have their own debt issues that they don’t want to face. Find other ways to spend time with these friends. Get takeout and sit somewhere away from retail establishments or cook brunch, lunch, or dinner for each other at your homes. You can also find a friend to shop with who supports your goal of getting out of debt. Give them permission to remind you about your goal when you are about to buy something you don’t need.
But I Always…
Sometimes, it is just part of your routine to shop. You might be getting daily emails from your favorite stores. You might be unable to resist the “Item of the Week” and have to see what it is every week. You might always pick up a present for yourself when out buying groceries or home essentials. The trick to breaking these routines is to recognize them as your shopping rituals and then change the ritual. If you can’t resist those daily emails, then unsubscribe. Being afraid of missing a sale may be what keeps you in debt. If you have to go check out a weekly special, maybe it’s time to face up to this and just stop doing it. Add up what you spend every week and see what it costs over a year. When shopping for household goods or food, shop with a list – no extras added on at the store. Try shopping without a cart. That leaves little room to add extras. Many grocery stores have a program where you order your groceries online and pick them up in the parking lot. Of course, this only works if you stick with what you need.
What Was I Thinking?
Impulse shopping happens when your willpower is depleted. This could be because you are tired or distracted. Retailers set up the shopping experience to prey upon this situation. You are invited to admire (and buy) whatever they are presenting. It’s no coincidence that stores often have a luxury feel to them. Try putting off purchases for at least a day. Or, for 30 days, don’t buy anything that you want but don’t need. If you get past the emotional need to buy something, the item will still be there when you’ve had time to think it over and review your budget. Try shopping with just cash. Make sure to take a small amount so you don’t regret spending so much you blow your budget. You might even have an allowance for extraneous shopping added to your budget. This way, you know you have a certain amount to spend for presents for yourself. It’s okay to spend that much, just don’t spend more.
Retail Therapy
If you are prone to shopping because it makes you feel better or there is a void in your life, you may have noticed that this feeling passes shortly after getting home with the purchase. If you are inclined to shop this way, try surveying your cart of purchases before you get to the register. Ask yourself where you are going to put the items, how are you going to pay for the items, do you need them, can you wait and think about it. You may also ask yourself how you feel and why you are really in the store in the first place.
Credit Repair and What to Do Instead of Shopping
Start saving. Begin with 3% to 5% of your budget and work up to 10%. Your goal here is to save between 3 and 6 months of your salary. This will protect you from large emergency expenses as well as a job loss. After getting this emergency account built up, beginning investing. You now want to start building up your retirement fund. No one wants to have to work beyond the point when it is no longer physically comfortable.
TGUC Financial can help you with credit card refinancing and debt consolidation to make your debt repayment process move faster. Contact us today.
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