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July 31, 2006
Credit Card Debt - What's Triggering Your Spending
When we first stop using credit cards, we may truly get in some financial binds.
We haven't had time to get over the initial hump.
We haven't fully implemented our spending plan, and we don't yet have a savings account worth mentioning.
We remember that for each and every credit card scenario, there is an alternative.
If we trust ourselves enough, calm ourselves so we're able to think it through, we'll stop reacting with credit and start creating solutions—even before we've reached a point where we have a savings account and a realistic spending plan.
We ask ourselves a few questions:
Is the purchase absolutely necessary?
Can I put it off?
an I do something less expensive?
Can I liquidate an asset?
Can I borrow from a friend in exchange for collateral?
Can I sell something?
Can I withdraw from my savings account?
It is vitally important to stop and think about what emotions are in effect when we spend up a storm.
It is rarely an actual need that brings us to financial ruin but rather an emotional state that drives us to spend.
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