In these tough economic times, there is a lot of discussion about the state of the economy in general terms. The credit crisis and the various plans to move the nation out of spiraling debt and into more thriving times is the hot topic of every media outlet. What we each need to be doing is assessing the management of our own personal finances. You’ve heard the saying, “Think Globally, Act Locally”. Here are some ways you can manage your own personal credit crisis:
Don’t carry your credit cards with you.
The most common response to this is “I need it for emergencies.” Ask yourself, “When was the last time you needed a credit card for an emergency?”
If you don’t have a credit card with you, it decreases impulse spending, and allows you time to find other creative solutions to a financial situation rather than incurring more debt.
Make a plan before using your credit card.
Make a list of the items you intend to purchase with your credit card. Plan a spending limit and develop a plan to repay the debt you are about to create. Statistics show that by simply having a credit card available when you shop, a person is likely to spend 1/3 more than originally intended.
Take 24-hours to contemplate before making a purchase.
This works especially well with catalog purchases and “impulse purchases”, as they are not quite as appealing the next day.
Discuss your intention to use your credit card with another person.
Creative strategies and problem solving skills can be difficult to access when we are feeling anxious and stressed. It can be very profitable to talk to a person who is not going to judge, but will help you find alternative solutions.
Tags: credit card practices, credit crisis, debt, economy, financial planning
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