The urge to splurge – The pitfalls of debt and how we can avoid it!

We live in a consumerist society, where consumption and even conspicuous consumption is considered par for the course. In an era where the sales numbers of consumer goods companies are indicators of the health of an economy, it is inevitable that debt will be the easiest way of supporting this insatiable demand. When used wisely and for the right reason debt can serve a useful purpose. For example if you are a student and take a loan for higher studies, you will improve your job prospects and not only repay the loan, but contribute to the economy by way of taxes. best domains Similarly a loan taken to invest in a business is nothing to be looked askance at.

What is not right is keeping multiple credit cards and buying whatever it is that you fancy-clothes, electronic gadgets, liquor, jewellery, cosmetics, accessories etc. Such people will buy like there is no tomorrow, not thinking about how they will repay the same. secure web hosting They inevitably end up in a debt spiral with most of their payments not even being able to cover the interest incurred. This completely wrecks their credit rating, and they become ineligible for housing loans, insurance and even employment.

We live in interesting times (a most unfortunate situation to be in according to the ancient Chinese!). On the one hand while prosperity has reached unprecedented levels, our lives are full of stress on account of an unseemly competitive approach towards consumption. The easy availability of debt has clouded our ability to think clearly and we end up buying more than we need or can consume.

Getting out of this untenable situation seems to be difficult, for we seem to be programmed to put ourselves in situations of even more debt. Well that is not quite right. You can try to reform the situation and course correct by taking a few proactive measures. On top of the list would be to make out an inventory of the things we have. We can then apply perspective and refuse to spend a penny more on what you have a surfeit of. If you have twenty shirts, you should be thinking of giving a few away rather than buying a new one.

Reduce the number of credit cards that you have to one or two, and try not to shop with these, unless absolutely necessary. Instead give yourself a limited cash allowance and try to manage within that. It would also be a good idea to pay attention to how you manage your finances. Do not let your debt get to unmanageable proportions. If it has, you have to take drastic measures like tearing up your credit cards, and repaying your debts on priority. The idea should be to improve your credit score. This may appear painful at first, but is a necessary step to restoring financial viability.

Lastly one should remember that one’s measure of success or happiness has to be based not on conspicuous consumption, but on what really makes us happy. The next time the urge to splurge overtakes you, go for a walk in the park, curl up on a sofa with a book, watch a movie on tv, exercise, cook a good meal, spend time with the family, call a friend, make a small change in your home or list two way (that work for you) when you have this urge.

We are not here for a very short while. There are better things to do in life, than worry about repaying debt.