How You Can Tell You Are in Debt Trouble
Ready to Get Rid of Your Debt?
Surefire Ways to Rid Yourself from Debt
What is Unsecured Debt Consolidation?
Curing the Holiday Debt Hangover
Pros and Cons of Consolidated Credit Card Debt
Are You a Shopaholic?
Do you like to shop ‘til you drop? Is your closet full of shoes, clothing, and other items that you might not have ever worn? Is your spending out of control, causing you problems? You might be a shopaholic. Unfortunately, too much shopping can lead to out of control debt. If shopping has put you in the poor house, you might want to get help for your spending obsession. Once you can get your spending under control, you might want to consider consolidating all of your credit card debt into a consolidation loan.
Get Help for Your Spending
If compulsive shopping is ruining your life, you should get help. Compulsive shopping is an impulse control disorder. It is not limited to wealthy people. Fortunately, most people don’t need to visit the psychiatrist to control their shopping habits. First, admit that you have a problem. Then put together a budget and stick with it. This doesn’t mean that you have to stop buying anything. You just have to decide on an amount to spend and stop there. You may want to purchase gift cards to spend with. You can buy reloadable gift cards. Every month, you can reload your gift card with the money you have budgeted every month. Cut up your credit cards, or fill up a plastic bag with water, stick your credit cards in, and freeze the ice in the bag. Once your credit cards are frozen in a block of ice, you will have to wait a while before you can use them again, giving you time to think about whether you really need that shirt or handbag that you thought you had to have.
Consolidating Your Debt
Once you find a way to control your spending, you might want to consider consolidating your debt. As a shopaholic, you probably have applied for several credit cards. It might be difficult to keep track of all your bills every month. You might have trouble making the minimum payments. Debt consolidation will roll all of your credit card bills into one monthly payment, perhaps with a lower interest rate than you are paying now.
Debt consolidation can lower your payment for a few reasons. You might be able to lower your interest rate with debt consolidation, especially if you have several high interest rate credit cards. Debt consolidation can also lower your payment by stretching out your payments over a longer period of time. This often will cause you to pay more interest in the long run, but if you are having trouble making your payments, this can provide some relief to your monthly budget.
When You Shouldn’t Consolidate
Debt consolidation can get creditors off your back if you have overspent due to your shopping habits. It can make it easier to pay your bills if you have applied for several credit cards in order to maintain your spending. However, debt consolidation isn’t for everyone. Particularly, if you have not resolved your problem with overspending, you may end up in more trouble than you are right now. When you consolidate debt, you pay off your credit cards and replace it with one loan. If you then start using your credit cards again after you consolidate debt, you may get into more debt.
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