percentage of world’s residents may suffer from shopping addiction, a disorder
of impulse control associated with problems such as fretfulness, despair, low
self-worth or petulance. Shopping for them is like taking an adrenaline pill,
their credit cards are fuming and they are not hesitating to spend more money
than they have to empty the shelves of shops. Paying by credit cards you can
spend more, much more than you have to and much more than you need. It’s the
vicious circle. The invisible bondage that keeps on pressing its victims,
making them slaves to today’s society. Spending, spending, spending! The
movement that banks are so happy to support. If you buy more, you’ll get a
store discount or your payment will be prolonged. Spend funds that you don’t
have and get it at lower cost with our credit card!
aren’t making full payment of intake, they are accessing to one of the most
affluent lends in the market. Therefore, they are making a terrible mistake.
While it is true that there will always be necessary and incidental expenses,
emergencies that sometimes we must solve with this product, there are also many
excesses, desires that are excessive and that we assume for ease of finance with
those plastic things with a double edge.
who constantly uses the service of the "credit” on a regular basis (i.e.,
funding with it for more than two months in the previous year), or resorting to
"cash advance” should rethink his use of the card. The cardholder, unknowingly
and unaware is becoming victim to the credit bondage. The systems allow you to
use it. Provides you with means that you don’t possess and no matter how much
you are successful at your job and how much your wage is going up, you cannot
clear your check balance. You don’t notice it at the beginning. You have a good
job, the bank contacts you for a possible credit card with low rent of interest
or you decide to ask for one so you can obtain things that you have always
wanted and you haven’t had the opportunity to acquire. You start to squander
your hard gained money and you just go a little over the budget. But it’s ok,
as the credit card business assures you. For a little percentage, you can spend
their money and return it whenever you can. That is the first cord of your
bondage that you put on yourself. Now, on a spur of a moment you feel the need
to buy more and you are assured that you can make more money and pay it back in
time. You keep on procuring more cords and the bondage starts to feel a little
tighter. Although is not a physical bondage, the stretch that you feel feels
like physical. Unawares, you are piled up in debts that you don’t know how to
return, but you keep on living paycheck to paycheck. What if you lose your job
and you cannot get to monthly payments for your credit card? Can you find
another one in a short time? Will you be able to live for the period in between
or will you reach for the credit card again and make it all easy? You are no longer a successful self-realized
person, but a name on a list that has to return a huge debt.
essential to distinguish the card as a payment instrument, which is aiding our
planning, insurance of our purchases, substitute for a dangerous cash, manager
of discounts and facilitator for our travels for our faithfulness to it, from
the credit card used as permissive funding mechanism that we reach up for in
order to pay for wastages. The first card adds value. The second one destroys
finances. The interesting thing is that it can be the same card in both cases.
Namely, the issue is not for what we are using it, but in how we are using it?
If this is not understood, and clearly, then the best credit card is no credit
card at all.
If you are
financing with a credit card, a first phase is to be conscious of the harm you
are doing to your funds. The how is easy: look up the bank statements for the
past six months and detect how much have you spent, month by month, in the
concept of "Financing Interest”. Add up those moths, multiply it by two, in
order to have an annual estimated cost of how much you have to pay for a year.
The financial cost is usually equal of one month’s salary or a monthly income
of the cardholder. And then we say that it is impossible to save up money! Why is
You will also
have to be attentive of how much have you spent and why you did it. You need to
identify patterns and behaviors and situations (because they are yours not of
the credit card) that have compelled you
to make such consumption, especially those which, after a cold consideration,
were nothing but impulsive decisions or small habits that end up destroying
your ability to save. Check the balances of all your plastics, in order to
identify what you owe. Also, request your history and "score” credit to see how
the banks see you. You will have a careful record of these balances (monthly)
and the "score” (quarterly) as a starting point against which you will measure
clearer situation, and never exasperating (you wouldn’t be the only one who is
facing the credit bondage), you can take the decision to break free from the
black toxic plastic ball, and you can be a self-realized person again. The
"how” is simple: You will stop using it! Literally, you will store your plastic
in a safe place and you will only follow via your statements and internet
access. But remember, keep them, do not destroy them. For a purpose of
maintaining and developing your credit history and credit flexibility, it is
important that you can display, through credit bureaus, that you have
sufficient access to formal credit instruments (although, of course, you are
not using them).
Not all can,
however, preserve plastics. For some people, without any judgment, the
"temptation” to use the saved card is too high. Under that scenario, it is
understandable that the plastic should be destroyed, at the same time, the
person who is facing this lack of control should seek help in order to change
that pattern. If the lack of control in spending remains, it doesn’t matter if you
cut your credit card into a thousand pieces: There will always be a lender or
usurer that will gladly provide you money in exchange for a slavery monthly
payment with a "reasonable” interest, worst then the cards.
How much can
we put on the credit card? If you make the minimum payment, and you are not
doing consumption or charged for anything it may take you even three years to
cancel your balances. 36 months paying an interest it’s too much. That kind of
credit bondage should be avoided at any cause.
Try and be diligent to pay as much as you can. Always more than the
minimum, and avoid at any cost to fall into default or postpone your debt. The
reason? Avoiding surcharges that could generate above the by now high-interest
tolls. Another thing, do not expect the end of the month to sort your payments.
If you can make weekly outflows… Make them! And if you have any idle capital or
savings, do not think twice to pay it to your plastic debt.
We all have
virtually good and bad debt. The good debt is the one we use to produce, not to
spend, an asset that is working for us and is giving us money (profit). For
example, take the cholesterol in our blood, there is a good and bad, but we
must ensure that our good cholesterol outweighs the bad; in debts, we all have debts
like the mortgage on the house, the car, or other types of debts that are
necessary, but it is something else to get out of balance each time you shop
and for a thing that actuality we do not truly need. The good debts allow us to
earn extra money and just as the slaves of Babylon that extra money that is
saved someday can buy our financial freedom. Remember credit card debts
enslave, they keep you trapped working to pay them and enrich others, the limit
you in your decision making. In other words, credit card debts RESTRICT YOUR
you may ask yourself are there any shortcuts? Any plans that you can negotiate
payments? Borrowing for debt consolidation you can consider? You probably know
the answer, but let’s remember: Easy was the way of waste and enslaving debt.
The state in which you are now it will be challenging. But you will come through. You will see.