The causes of problems with money are as diverse as the amounts of cash found in every individual’s checking account. In basic economic term, the demand for products and services constantly exceeds the supply of money on hand. Regardless of what the expenditures are, the outcome starts with fiscal hemorrhaging and concludes with undeniable debt. Huge car repair bills and catastrophic medical bills are one thing, yet frivolous spending is another – and at present, such frivolous spending is reaching epidemic levels.
How to Let Avoid Credit Addiction
1. Extravagant Lifestyle
The first thing to do to cut off credit addiction is to let go of one’s extravagant lifestyle. To let go of this way of life, consider living your life in a sustainable way. Life is not a sprint, but instead an ultra-marathon. As such, spending money must be well paced, yet a number of individuals spend their money like there is no tomorrow. A sustainable lifestyle implies living a more conscious lifestyle, in which items bought are made consciously rather than frivolously. It likewise means enjoying the present moment, while keeping a wary eye on the future. A sustainable lifestyle likewise means purchasing only what you will use and not wasting precious natural resources. Behaviors include the use of reusable cloth grocery bags and driving a hybrid car.
2. Credit Cards
Learn to let go of your credit cards. Credit cards are nothing more than expensive loans. Each time you pull out a credit card, you are borrowing and paying a high-interest rate of about 13 to 23 percent. Get in the habit of going cold turkey with your credit cards. One recommended action is to cut up all but one card, stick the remaining card in a glass of water, and then place the glass in the freezer. This tactic ensures that you will only use the credit card for emergency purposes.
3. Temptations to Spend
Learn to let go of the temptations to spend. If you do not have the cash to spend or waste, then do not hand around people who are always on the hunt for new items and spend lots of money, as this can later become an inescapable trap. In addition, before heading to the shopping malls, create a list of what you really need and maintain the willpower to purchase only what is on the list.
Learn to let go of your debts. Do you have lots of credit card bills as well as other loans? Discuss to your bank manager about consolidating your debt into a single loan. and pay it off as soon as possible. The next time you make purchases, make sure that they are good investments because of the majority of these items depreciate to nothing quickly.
Credit Cards, debts or loans, extravagant lifestyle, and temptations to spend are just among the many things that you need to let go of because they are merely draining your pockets and can merely worsen your credit addiction. If you desire to achieve financial freedom, you need to save more and spend less.