How to Overcome a Spending Problem

With the high costs of products and services today, it is easy to overspend. Putting purchases on credit cards or taking advantage of other attractive financing options only makes this situation worse. A habit of overspending can quickly lead to missed payments, harassing credit collection calls, and lawsuits or other legal actions. At Whitten & Whitten, our Indiana bankruptcy attorneys explain how to address this type of situation and overcome a spending problem.

The Psychology Behind Overspending

The first step in overcoming a spending problem is often to understand why you are overspending in the first place. According to U.S News and World Reports, living a lifestyle that is beyond your financial means and accumulating debts you are unable to pay is often motivated by one of the following reasons:  

• Lack of proper budgeting skills;
• Lack of financial planning for wants and needs;
• Lack of patience in terms of being able to wait for what you want;
• Succumbing to marketing strategies that appeal to your fear of missing out (FOMO);
• Succumbing to gimmicks claiming there is only a limited supply of certain items or a limited time to get them at a particular price. 

Trying to ‘keep up with the Joneses’ is another common reason for spending. Social media only seems to add to the problem, as it can show images of friends, family, or even strangers living the type of lifestyle that you want for your own but are unable to reasonably afford.  

How to Get Your Spending Under Control

Living beyond your means and overspending can quickly leave you in a financial hole that is hard to dig your way out of. Interest rates on credit cards and loans are already high, to begin with. Falling behind even a month on payments can result in penalties and other fees that make balances next to impossible to pay off. Before you know it, you may be facing harassing debt collector calls and threats of legal action. 

Filing for bankruptcy through the Indiana Bankruptcy Court can provide the financial fresh start you need. Depending on the type of bankruptcy you file, you can eliminate certain types of debts while renegotiating payment terms on others. Once you address your rising debt situation, take these actions to get your spending under control: 

• Assess whether your current income is enough to meet your financial needs and whether you might need to look for another job or part-time work to supplement;
• Make a realistic budget and stick to it;
• Wait 24 hours before making purchases;
• Limit social media time and be more realistic in viewing what others post. 

Request a Consultation With Our Indiana Bankruptcy Lawyer

At Whitten & Whitten, our Indiana bankruptcy lawyers can help you get the financial fresh start you need to overcome a spending problem. To discuss your options, call or contact our office online and request a consultation today.