Denial is a river upon which there are no pleasure cruises.
Admittedly, the ride can feel good for a while. Eventually, though, the scenery gets progressively worse, depression comes aboard and the final destination reveals itself to be defeat. What’s more, when you look around, you’ll see a lot of other similarly disillusioned people, who also thought they were going to land someplace far better than where they ended up.
So, are you in debt denial? It’s far too easy to turn a blind eye to problems until they get so far out of hand, they demand your immediate attention. However, when it comes to money, this can often be too late.
Here are some signs to observe to help make sure it doesn’t happen to you.
You Consider Shopping a Form of Recreation
Your credit cards are straining under the weight of your shopping habits, but you keep right on buying because it feels good to get new things.
One of the most difficult aspects of modern life is developing the ability to recognize when what you have is good enough. If you’re buying things you don’t need just to feel good about yourself, you have a problem. Especially if you’re doing so while debts go unpaid.
The Lottery Is Your Debt Plan
As far fetched as it sounds, a study conducted by the creators of the investing app STASH found nearly 60 percent of millennials surveyed think playing the lottery is a reasonable retirement planning strategy.
Granted, hope for the future is a good way to stay motivated. However, you’re setting yourself up for a huge letdown when you believe reaping some sort of a windfall is the method by which you’ll eradicate your debt and enjoy a comfortable retirement.
Yes, it’s possible — but the probability is far too low to make it reasonable.
You’re Borrowing from Pamela to Pay Peggy
If you’re taking cash advances on a credit card to make payments on another one; to quote Oda Mae Brown, Whoopi Goldberg’s character in the movie Ghost; “Molly, you in trouble girl!”
This practice only serves to make your debt larger. After all, interest rates on cash advances and credit card “checks” are far higher than the ones you pay when you use a card to make direct purchases. This means you’re adding higher interest charges to the ones you already incurred on the card you’re paying.
Do yourself a huge favor; contact a debt professional to help you find a better strategy if things have progressed to the point at which you paying your cards this way is necessary. However, you should also study some background information like these Freedom Debt Relief reviews to be certain you’ve found a capable partner before choosing one.
Living Without a Spending Plan
You are far more likely to find success in any endeavor when you’re operating based upon a plan. This is especially true when it comes to finances. You should know exactly how much money you have coming in each month and exactly how much of it is consumed by your expenses.
This the best way to develop an effective strategy to eradicate your debt, as well as save for emergencies and retirement needs. Living without a spending plan means you’ll be reacting to situations rather than planning for them.
If you see yourself in any of the traits described above, you are likely to be in debt denial. The good news is all you have to do is the opposite of what is described above to reverse the situation.