Bankruptcy & Foreclosures

We’ve all heard the old adage that money can’t buy happiness but the fact of the matter is that money is necessity for our survival and a tool that enables us to reach our goals. We incur debt when we need money now but don’t have the resources to draw it together. While it is a given that there are high price items that very few could afford to pay for outright (homes, cars, and education for example) a majority of debt has been linked to impulsive purchases- unnecessary items put on credit cards or financed through personal loans.

One of the unspoken risks of carrying credit cards is that they remove the guilt typically associated with parting with cash. In other words, individuals with overwhelming credit card debt often report that part of the reason for their troubles is that swiping a card through a machine doesn’t feel like spending real money. The unfortunate reality is that it certainly feels like real money required when the bill arrives.

Sometimes a very simple approach to impulsive (or compulsive) spending habits is to dig deep into your own psyche in effort to understand what causes you to splurge. As ridiculous and obvious as it sounds, many simply cannot answer on account of why they continue to purchase unnecessary items with money they don’t have. Studies have confirmed that people are less likely to make spontaneous purchases with cash than they are plastic. If that’s what it takes to keep your spending in check, don’t hesitate to leave the plastic at home.