How often do we use money, like Novocain, to numb the pain in our lives or the pressures at work? Instead of making things better, spending just gets us deeper into trouble.
Yet we justify our shopping sprees with thoughts like, “I’m going through a divorce. I deserve this,” or “I hate my job. At least I can enjoy my life.”
The real problem: we’re not honest with ourselves. Our denial produces considerable debt.
Getting out of denial is a prerequisite for prosperity. Credit card debt is insidious, but not insurmountable.
Making minimum payments can take 30 years or more to pay off (because 75 percent of what you pay goes toward the accumulating interest).
However, I’ve interviewed hundreds of women who have risen from the ashes of their once reckless spending. They did so by taking a series of steps:
- They sought help (a book*, counselor, or support group like Debtors Anonymous)
- They stopped using credit cards (no exceptions, no excuses)
- They lowered their interest payments (negotiating with creditors or transferring the balance to a lowered interest card)
- They got crystal clear on their expenses (writing down everything they spent)
- They stopped overspending (by putting their expenses into categories, they saw where to Shave and Save)
- They followed a plan to pay down their debt (www.nfcc.org can help)
What are you doing to get out of both denial and debt? Share here.
*I highly recommend How to Get Out of Debt, Stay Out of Debt & Live Prosperously by Jerrod Mundis (based on the principles of DA)