| The average person who consolidates debts also | | | | and hopeful, winning would change my life.” |
| winds up in debt again. The only way to get out | | | | The trigger is spending to improve self-worth or |
| of debt forever is to change the way you view | | | | to avoid feeling poor. |
| money. If you had no debt prior to a major | | | | “$43.54, new red heels, felt like my boss is |
| financial downturn, then you can get debt relief | | | | pushing too hard, wanted to treat myself.” |
| help through debt consolidation, debt settlement, | | | | The trigger is stress relief or wanting to feel |
| credit counseling, or bankruptcy. | | | | powerful. |
| If your debt is a result of overspending, you will | | | | Change Your Money Views |
| need to make changes to your spending habits. | | | | Changing your money views is the third debt |
| Determine How You Got Into Debt | | | | relief step. Money itself is neither good nor bad. |
| Debt happens to everyone at some point, and it | | | | The trouble comes from how you feel about |
| isn’t necessarily bad. A mortgage or student | | | | money. Spending makes you feel good about |
| loan is generally considered good debt because | | | | yourself, satisfies a desire, or relieves your stress |
| it’s a real asset or an investment in your | | | | at the moment, but then you feel worse when |
| future. | | | | the bill comes or you can’t pay your other |
| Bad debts from credit cards, medical bills, and | | | | bills. |
| personal loans are the kinds you should worry | | | | Emotional Spending |
| about. The four main causes of bad debt are: | | | | If you’re an emotional over spender or spend |
| - Family death or major medical emergency/illness | | | | because you have the money or it’s coming |
| - Divorce | | | | soon, it’s time to cut yourself off. Spend as |
| - Job loss | | | | little money as possible for one month. Don’t |
| - Overspending | | | | shop, go out to dinner, or go places where you |
| If you had no debt prior to a major financial | | | | can spend money. Bring your lunch to work with |
| downturn, then you can get debt relief help | | | | you to save money. |
| through debt consolidation, debt settlement, credit | | | | When you must spend money for things like |
| counseling, or bankruptcy. | | | | groceries or gas, take only the amount of cash |
| If your debt is a result of overspending, you will | | | | you’ll need. The rest of the time, carry only |
| need to make changes to your spending habits. | | | | $20 in case of a true emergency. |
| Find Your Spending Triggers | | | | At the end of the month, look at how much |
| Asking yourself why you spend more than you | | | | more money you have than you usually would. |
| make is the first step to debt relief. Do you buy | | | | How good does that feel? If you saved enough |
| necessities like food, shelter, and reasonable | | | | to pay down some debt, how much better does |
| transportation, or do you buy things you want at | | | | that make you feel? |
| the moment like a new CD or an expensive | | | | Credit Spending |
| dinner? | | | | If you overspend because credit doesn’t feel |
| If you make enough to live on, but overspend on | | | | like cash, spend only cash for one month. |
| things you want, you can only find permanent | | | | Remove the checks and credit cards from your |
| debt relief by uncovering your spending triggers. | | | | wallet. Once you see how much money |
| Common reasons for overspending are: | | | | you’re actually handing over, you’ll spend |
| - Maintaining an image or lifestyle | | | | less. |
| - Instant gratification | | | | Make the Change Permanent |
| - Feeling of power or self-worth | | | | Permanent change is the final debt relief step. At |
| - Avoiding feeling poor or deprived | | | | the end of the month, keep going. Allow yourself |
| - Stress relief (Retail Therapy) | | | | to buy the things you need, but ask yourself if |
| - Credit doesn’t feel like cash | | | | you’re buying it to feel better or if it’s a |
| To pinpoint your spending triggers, keep a | | | | necessity. Think about a purchase for a day or |
| spending journal for one month. Record | | | | two, and then buy it if you really need it. |
| everything you spend, what you bought, how you | | | | Once you change your money views, you can |
| felt at the time, and why you wanted it. At the | | | | find additional debt relief help from a credit |
| end of the month, review your list. You will be | | | | counseling service, consolidate credit cards, or |
| able to see your triggers in the list. | | | | create your own credit card debt relief system to |
| For example: “$1.00, lottery ticket, felt excited | | | | help you get out of debt and stay there. |