3 Troubling Signs You Have a Spending Problem

Fix that spending problem.

If You’re Doing These Three Things You May Have a Spending Problem

Are you jealous of those money-savvy friends of yours who bought a home, have investments and are financially secure? Stop living in envy and start formulating a plan to clean up your finances. Accepting you have a spending problem is the first step.

Here are some signs you have a spending problem and how to change your careless ways to get on a road towards financial security.

You Rely on Credit Cards

Relying on credit cards to make every day purchases is a good sign you have a spending problem. Using a credit card to cover emergency expenses or big-ticket purchases is not uncommon, but if you find yourself relying on credit cards to cover monthly expenses you need to start budgeting better.

The first step towards fixing your spending problem is to reexamine your budget. If you’re spending over your budget there may be expenses you’re not accounting for. Here are just a few reasons you could be going over budget:

  • You switched grocery stores and are paying higher prices for the same items
  • You recently subscribed to a monthly subscription service(s)
  • You’re not accounting for “fun money” in your budget
  • You created your budget during an exceptionally low-cost month
  • You didn’t account for seasonal changes to your utilities (air conditioning/heating)
  • You didn’t leave room for emergency expenses

If you don’t have a budget, it’s time to create one. When creating a budget, look at the past 90 days. Looking at just one month of spending won’t give you a good idea of how much you generally spend since we can spend more or less each month depending on numerous factors.

By building a good budget and following it, you should begin to rely less on your credit cards each month and reduce your debt.

You Miss Payments

Missing a payment can be easy to do if you don’t have auto pay set up. If you have multiple loans and credit cards, managing all your monthly payments can be challenging. There are two common reasons why people consistently miss payments.

The first reason is easy to fix. If you miss payments, because you’re forgetful and have too many accounts to manage there are a few things you can do. You can set up auto pay to automatically deduct payments on your due date. This is the easiest way to avoid late payments.

However, even autopay can have a bad day, so it’s important to check your bank account each month to ensure autopay went through. If you don’t like autopay, because you like to pay early or on your own schedule, set up calendar reminders with alerts on your mobile device.

If making payments is challenging because you have multiple accounts, consider consolidating your debt. Consolidating debt will make it easier to manage your debt and make payments. Consolidating loans or credit card debt can also help reduce your monthly payments if you can secure a competitive interest rate.

If you miss payments because you don’t have enough money to pay your bills on time, it’s time to build a stricter budget. If there’s no room to cut your spending, it may be time to consider taking on additional hours at work or a side hustle like becoming a Lyft driver. A few additional hours of work may help you cover your expenses and pay your bills on time.

You Don’t Review Household Spending with Your Spouse

Spouses should have a shared budget for expenses. Having one spouse in great financial condition, while the other is in deep debt is not beneficial since you likely share a mortgage or other investments. A shared bank account and/or credit cards is a great way to keep track of your household spending and debt. You can keep each other accountable and find areas where you can spend more wisely. Plus, sharing a credit card could help you earn more rewards points.

If you don’t feel comfortable sharing accounts with your spouse, it’s still important to come together and review spending and debt. This way you can keep track of where you’re spending over budget, find additional ways to save, and keep track of debt.

What to Do When You Overspend

If your spending problem caused you to overspend and you can’t cover emergency expenses, there are a few ways to cover your debt. Short-term loans can help borrowers cover unexpected expenses. These loans are typically between $100 and $1,200 and have short terms. You could also use a low interest credit card to cover unexpected expenses.

It’s important to correct spending problems quickly to avoid high amounts of debt and financial hardship. Make smarter decisions now to correct your finances and build a better future for yourself and your family.

 

 

 

This post is not intended to be a solicitation for a loan. Pomo One Marketing, Inc. provides these blogs for entertainment and informational purposes only. Remember to consider all your financial options before making any decisions related to credit.

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