Curb your emotional spending
Though many look at over-indebtedness in terms of money, the truth is that a bad financial situation is financially and emotionally distressing – and this can people to doing things which are out of character, and which they know they shouldn’t be doing. Emotional spending is one of these things.
Spending money on things we don’t need, because we are feeling emotionally vulnerable (stressed, anxious, depressed etc) happens often and is a great contributor to high levels of debt – especially retail/ store and credit card debt.
How to curb your emotional spending
- Realise what your triggers are . Write them down and be aware of them.
- If you know that you are vulnerable and easily swayed by advertisement and product/ store sales – avoid them by unsubscribing from newsletters, alerts etc
- Avoid trying to justify your need to buy
- Put your household budget in a place where you can easily and regularly see it (like your fridge door or bedroom mirror)
- Literally cut up your store and cards. The high from just swiping for an impulse purchase, is negated when you have to go through the process of identification verification and/ or applying for a new card
- Confide in a therapist/ friend. When the urge to unnecessarily splurge on credit arises, speak to someone who you can trust to talk you through the frenzied phase
Guilt and shame
It can be overwhelming and soul-destroying to watch your debit orders bounce. When this happens, every notification from your bank makes you feel more and more on edge. Sadly, South Africans do not easily talk about their bad financial situations – and many people end up carrying their burden of debt alone. Yet without talking about the problem – how will find a solution to it?
If you’re struggling with your debt, the last thing you probably want to do is advertise it to the world, especially with the amount of guilt and shame associated with it.
Perhaps you don’t want your family to worry about finances, or maybe you’re embarrassed to tell your friends. It can therefore become an incredibly lonely journey.
But you don’t have to carry this burden alone. Your family and friends are there to support you during difficult times and being over-indebted is nothing to be ashamed of – thousands of South Africans struggle with the same challenge every day.
Speak up, talk to those around you, and ask them for advice.
Solutions to emotional spending
Creating a plan to pay off your debt and freeing up some cash for necessities (and even some luxuries) will definitely have you feeling more in control of your finances and your life.
Debt review is debt management process, regulated by the NCR and set out in the National Credit Act (NCA) with the purpose of helping over- indebted consumers take control of their lives and become debt-free.
If you have a steady income and want to get your debt under control – contact us today. We are South Africa’s one debt counselling firm. Trust us. We’ve got you.