Debt Problems? There is Help and Hope

Many people in America struggle with spending, shopping, and related addictions. Even if you don’t have a spending/money problem so serious you would term it as an “addiction,” if you’re making poor financial decisions, there’s likely to be some negative habits and thought processes behind your behaviors. The good news is that it is possible to stop making poor choices, to avoid future bad-financial decision making, and to have a brighter financial future.   

For most people, the first and smartest step is to meet with an experienced credit counselor who can get to the root of their bad financial habits and instill good ones in their place. Doing that, as well as following a few basic tips, has the power to change the way people think about money and spending and to help them make much better decisions in the future.

Say No to Mental Math

If you’re someone who could benefit from credit counseling and learning a new way of thinking about financial matters, one of the first tips we have for you is to stop doing mental math!

Are you guilty of estimating how much you have in your accounts vs. how much you’ve spent vs. how much you can spend and then making decisions based on those estimates?

If so, you’re on dangerous territory. Estimates are never good enough. Instead of making guesses, you need to be keeping accurate financial records of every single purchase you make.

Realize that, often, people will deliberately-but-subconsciously lie to themselves about the current state of their finances in order to reduce anxiety (anxiety that should be there!) about making not-so-smart monetary decisions.

Don’t fall into that (often self-made) trap. Work with your credit counselor to get a realistic view of your current financial situation and what you need to do to get back on track. Then, be accurate, detailed, and honest when it comes to keeping track of your spending vs. earning details.

Expecting Instant, Easy Change

Trying to do a complete 180 overnight very rarely works out. Chances are, if you’re vowing to yourself that you’ll be 100%  smarter moneywise, starting tomorrow, you’ve made (and broken!) that promise a thousand times before.

Wanting change and recognizing problems with spending, budgeting, saving, and the like is a good first step. But expecting perfection immediately and then not achieving it equals nothing but guilt and let-downs.

Be realistic in financial goals. Aim to change one bad behavior at a time. If you’re a compulsive shopper, for example, set a goal of sticking to a budget or only going shopping once a month, instead of once a week....not once a year. Setting realistic goals, and, as mentioned, working with a pro is the real way to eventually see lasting, positive change when it comes to your financial hang-ups.