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Are You Addicted to Credit ?  by Paula Langguth Ryan Most people completely ignore the first tell-tale sign of credit addiction. They don't want to believe they have a problem and I don't blame them. Most people think that as long as they're making their minimum payments on time and they have a good credit rating that means their finances are in good shape. Want to know the first key sign of credit addiction? It's carrying a balance on a credit card. Credit was designed as a matter of convenience so you could make large purchases without running the risk of being whacked on the head and robbed because you were carrying a large wad of cash. Credit wasn't intended as a way to extend your earning power. Carrying a balance is the first sign that you may have a serious underlying credit problem, much like 2-3 drinks every night is a sign that someone may be a problem drinker. You're not quite an addict yet, but it is time to check out the other key signs to make sure. Other Key Signs of Credit Addiction If you are carrying a balance on any credit cards, look for these other key signs of credit addiction. 1. Inability to go a week without charging. Take your credit cards out of your wallet, stick them in a Ziploc bag, fill it with water, seal it up and toss the bag in the freezer. Can you make it a week without trying to thaw them out or does an "emergency" or "great deal" come up that requires you to take on new debt? This goes for "buy now-pay later" or "extended payment" offers too. 2. Taking cash advances off your credit cards or repeatedly dipping into your overdraft protection. Both of these are major signals that danger lays ahead. This is especially true if you're using that extra money to pay for essentials - or to pay other creditors. 3. Making smaller and smaller monthly payments. We all start off with good intentions of paying off our bills in full each month. Then we start making payments of several hundred dollars a month to "pay off a chunk" of the balance. Then one month we wake up and find that we're only making the minimum payments. At this point, any change in expenses or income can send your financial security into a tailspin. 4. Blaming "outer circumstances" for your need to take on debt. A job loss, a sudden medical emergency, your transmission blowing, or the water heater giving up the ghost are all unexpected events that we often use as excuses for taking on new debt. Any combination of these three should be a warning flag for you to seek immediate help with your finances. As a first step to breaking the addiction to credit, make a commitment to yourself that nothing will make you take on any new debt today. Create a game plan for alternatives to taking on debt, if an emergency comes up. Think outside the box. Years ago, I owned a cottage by the Chesapeake Bay. One day, the old well went dry and a new well was going to cost $6,000. Rather than take on new debt, I asked neighbors if I could tap into their well for a few months. We ran a garden hose from their pump house to mine hooked and I started saving fast and furious until I was able to pay for the well. Every day people share with me that they had good credit for years before they suddenly found themselves unable to make ends meet each month and eventually wound up in bankruptcy court. The truth is, they didn't have good credit. They were just good at hiding their credit addiction. You may find it helpful to hire a prosperity coach to help you figure out why you feel like what you have isn't enough, why you're afraid of doing without, and to help you create a strategy getting back on track financially. Performance Coach and Prosperity Advisor Paula Langguth Ryan offers a free 30-page e-booklet titled Heal Your Relationship With Money. To get your free downloadable copy, visit www.ArtOfAbundance.com/healing.htm

 

 

 

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