Millions of Americans are addicted to credit cards and don’t even know it. It’s not just that they love shopping or the convenience of plastic. It’s that they can’t stop spending, even when they can’t afford it.
Like other addictions, emotional spending can easily overpower rational thought. It’s difficult to use logic against skillful merchants who work very hard to create a pleasing environment that encourages spending.
It’s hard not to get sucked in, what with the artful product displays, uplifting music, smiling clerks and that happy song the machine makes when you swipe your credit card.
Retailers are masters at creating a positive shopping experience. All that shine makes it difficult to resist a clerk offering 20 percent off just for opening up a new credit card.
1. Warning signs.
There is a point when a person goes from simply overspending to being addicted. Here are some of the red flags:
- Opening new lines of credit because yours are already maxed out
- Balances grow every month, instead of being paid down
- You have no idea how much you owe
- Shopping even when you don’t need anything
- Fighting with your partner regularly over money
- Lying about purchases and the number of cards you have
“Replace your shopping habit
with something more fulfilling.”
2. Fight credit addiction.
Like other compulsions, those who are addicted to credit cards believe they can stop anytime. They rationalize purchases, transfer balances around and skip some bills to pay off others. Eventually, their juggling skills can’t keep up.
To stop the cycle, it’s not enough to simply promise to spend less. An addict must take a multi-layered approach to stop the behavior, replace the behavior and prevent the behavior.
- Cut up all credit cards except one for emergencies.
- Give that one card to a trusted friend for safekeeping.
- Freeze your credit report so no future credit lines can be opened.
- Create a plan to pay down debt.
- Stick to shopping lists and only pay with cash.
- Carry your statements as a reminder of your debt.
- Ask friends for help or join a support group like Debtors Anonymous.
To really change your habit, it’s so important to get counseling. You’ll want to see a financial counselor to help you create a budget and pay down debt, build an emergency fund and set short- and long-term goals.
You may also consider seeing a psychologist to help you work through your compulsive behavior. They can help you find the root cause of the overspending and treat the problem directly.
One of the best things you can do for yourself is to simply avoid the shopping mall. Don’t even step foot in one, not even to window shop.
Telling yourself you are only there to browse will be torture and could result in a backslide when the clerk offers to look up your credit card account.
Instead, replace your shopping habit with something more fulfilling: exercise, family time or a new hobby. You will soon discover the joy of lasting happiness over the shallow smile of a store clerk.
Photo source: my7s.com.
Advertiser Disclosure
BadCredit.org is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free for users, we receive advertising compensation from the financial products listed on this page. Along with key review factors, this compensation may impact how and where products appear on the page (including, for example, the order in which they appear). BadCredit.org does not include listings for all financial products.
Our Editorial Review Policy
Our site is committed to publishing independent, accurate content guided by strict editorial guidelines. Before articles and reviews are published on our site, they undergo a thorough review process performed by a team of independent editors and subject-matter experts to ensure the content’s accuracy, timeliness, and impartiality. Our editorial team is separate and independent of our site’s advertisers, and the opinions they express on our site are their own. To read more about our team members and their editorial backgrounds, please visit our site’s About page.