5 “I Need That!”
You're perfectly happy with last year's model, until seemingly everyone in your circle of friends rushes out to buy the latest craze. Suddenly you feel like you need to have it as well just to fit in. You don't have the money, but it doesn't matter, plastic will take care of you.
4 “It's on Sale, So I'll Save Money!”
You see it on displayed prominently in the middle of the store, and the price has never been lower. You were planning on buying it one day when you'd saved up enough cash, but it's better to buy it now when you'll save money, right? You ignore that you'll likely over pay for your shiny new toy as you rack up interest charges paying for it over the coming months or years.
3 “I Deserve That!”
You work hard, and deserve to have the things that will allow you enjoy life the way it was meant to be enjoyed. You can't afford it, but as long as there's room on one of your lines of credit, you can continue to live the good life.
2 “I Can Afford That!”
You calculate whether you can afford something by how much it will increase the minimum payment on your credit card. Never mind that such a paltry amount of that payment is being applied toward your balance (which increases each month with new purchases) that you'll never see it reach zero.
1 “I'm Doing Fine”
You constantly tell yourself all four of the previous lies and don't see anything wrong with that. You refuse to change your perspective on money or your spending behaviors. You fail to see the life you could have if you didn't have to make those credit card payments each month. Until you can admit to yourself that you need to change, you will forever be a slave to increasing balances, and the interest you pay each month will line the pockets of someone else.
How many of these lies are you telling yourself?
For more information about detrimental spending, visit the Top 5 Habits that you don't realize are hurting your credit.
And if you are over-exteneded, take a look at these 5 compelling Reasons You Should Remortgage today.