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Debt and Compulsive Spending
A fun day out shopping can turn into a fun habit and in some cases to a debt-causing addiction. The advisers at Debt Plan Direct recommend you ask yourself the following questions:
- Do you shop as a means of relieving stress or escaping everyday problems?
- When you are shopping, do you experience feelings of euphoria and excitement?
- Do you feel guilty or remorseful afterwards?
- Do you ever hide your purchases from relatives and loved ones?
- Do you buy more than one of the same item, and keep items in your closet with the tags still attached?
- Is your shopping habit causing emotional stress, financial debt or ruined credit in your life?
If you answered "yes" to more than one of these questions, you may have a shopping addiction. The first step and most difficult step is identifying and admitting that there is a shopping addiction.
Debt Plan Direct can help identify the source of the shopping addiction issue and provide options to help improve your situation. If you are having trouble repaying your debt, a credit counselor will help you assess whether or not a voluntary debt management program is appropriate.
A shopping addiction will result in the accumulation of personal debt on all forms of credit including credit cards, mail order catalogues, overdrafts, personal loans and store cards.
The debt problems arise when people spend money that they simply just do not have leading to an increase in the level of debt and debt problems. Debts then spiral out of control and can soon become unmanageable. Other consequences are denial and desperate acts to cover up the addiction.
So Why Do It?
Some people shop to improve their mood and to get that "high" or a "rush" from buying; spending provides a thrill or a challenge. Others spend as a way to compensate for a lack of emotional support. Low self-esteem and depression are somehow temporarily erased during a shopping trip, only to return soon afterwards.
Various social and cultural factors reinforce the addictive potential of shopping and spending, and the impending debt that can follow. In addition to this the easy availability of credit cards and creditor’s irresponsible lending practices all contribute to shopping addictions.
The Consequences
Several problems can occur from a compulsive shopping behavior including an increase in debt levels as well as affecting personal relationships.
The greatest consequence of compulsive shopping is the financial toll on an individual. An increase in credit card debt is another issue as it is a lot easier to spend on credit cards than spending your own hard earned cash.
Many individuals with debt problems have low credit ratings due to their inability to pay their bills. Financial debt can result in legal, social, and relationship issues as well. Others resort to borrowing money, and some decide to take on a second job to help pay multiple credit card balances and mounting debt.
What to Do About It
Start by recognising that spending is a deliberate act, and consider the stress that debt causes you and your loved ones when you demonstrate this behavior.
- Imagine your life without the challenges caused by this compulsive behavior and use this positive image to motivate a change in your lifestyle.
- There are many alternatives to spending money that can bring enjoyment to one's life. Activities such as exercising, listening to music or simply enjoying nature can be relaxing and pleasing.
- Find out what other things make you happy and pursue them in your life.
- For professional guidance and support, you may decide to seek out the services of a credit counselor to help you get back on track financially.
Remember: If you are suffering from a shopping addition or have accrued uncontrollable debts through impulse buying, please don't be embarrassed – Debt Plan Direct has trained advisors who can offer you free financial advice. Rest assured - no one will judge you.
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