If only we could all govern our spending habits practically, none of us would face any problems. For those of us who find themselves under the burden of debt, logic and clear thinking would come to the rescue before any long-term damage was done. We went know-how to live within our means and we would now how to make the best use of the money that we have. But unfortunately this is not how it is in real life.
In real life people get themselves in debt, and very commonly because of needless and reckless spending. In retrospect many of the people who find themselves under the burden of a spiraling and uncontrollable debt, could have avoided this situation if only they had acted a little more prudently and with the better judgment.
So why does that judgment seem to elude so many people when it comes to spending money, especially on credit?
Very often a factor that needs to be dealt with is the psychological factor concerned with spending money. Lack of credit education and know-how of better financial planning is something that can be learnt and something that other people can help you with. But trying to root out psychological needs and factors that make you spend more money than you can afford can be a very personal and difficult issue to handle. But if you do not face these factors you may never get control of your spending and your debt no matter what other help you receive. You will always face the danger of ending up in the same situation as before.
If we are to tackle credit card debt first, the psychology behind people overspending on their credit cards can be a very simple one. Credit cards are the single most common and foremost reason of people running up a debt. Charging a credit card instead of cash gives a feeling of getting something for nothing. The pleasant feeling that you get when you purchase using a credit card is not associated with having to pay for it with the money because that comes much later with your credit card statement.
Studies have revealed that people are much less likely to make the purchase with their using cash as they would be when using a credit card. If credit card shopping provides you with a feel-good factor then maybe it is time that you left the credit cards at home when you go out.
You also need to think about how you relate to money. It could and it deeply to your self-esteem and self-image. Research reveals that people with low self-esteem engage in more impulse buying for things that they don’t need.
It could be important to remind yourself that money does not make you a better person. You do not need money to be a good person and should not be connected to your sense of self-worth. It is true that success person is also attached to the financial success of the person. But you can do many more important things with your life that can earn you respect where the amount of money you earn does not have to be a measure of who you are. Once you removed the psychological barriers and disconnect your sense of self-worth to money you may be more capable of handling your money wisely and even open the ability to make more.
Limiting your ability is unconsciously by having a low opinion and self-worth can also keep an individual from being financially successful. Developing a positive attitude about yourself and about money will attract more positive aspects in your life. Having fulfilling agendas and goals in life will make sure that you to not feel the need to spend money to generate positive emotions.
Is working on psychological needs when it comes to spending money is important because it is something that could be at the very root of the problem. Any assistance that you get with money managing and credit counseling will not help you much if the root of the problem is not removed. It could be a futile and frustrating process to find yourself in the same situation again and again if you do not confront the base issues.