Most people incur debt at various points in their lives, whether taking out a student loan for college or buying a first car or a house. For some people, unsecured debt, which is debt not secured by some form of collateral such as a house or car, becomes an addictive and unmanageable part of their lives.
Debting is more than just sensationalized shopping. It can cripple and ruin someone’s life. Debt is like alcohol for the alcoholic, food for the compulsive eater, and gambling for the compulsive gambler.
Compulsive debtors often engage in compulsive shopping or under earning, or alternate between overspending and deprivation. Eventually, a person with a compulsive debting problem finds that life has become unmanageable.
Compulsive debting can also affect those who are self-employed or business owners. Here are the 12 signs that you are an addict of debt.
1.Being unclear about your financial situation. Not knowing account balances, monthly expenses, loan interest rates, fees, fines, or contractual obligations.
2.Frequently “borrowing” items such as books, pens, or small amounts of money from friends and others, and failing to return them.
3.Poor saving habits. Not planning for taxes, retirement or other not-recurring but predictable items, and then feeling surprised when they come due; a “live for today, don’t worry about tomorrow” attitude.
4.Compulsive shopping: Being unable to pass up a “good deal”; making impulsive purchases; leaving price tags on clothes so they can be returned; not using items you’ve purchased.
5.Difficulty in meeting basic financial or personal obligations, and/or an inordinate sense of accomplishment when such obligations are met.
6.A different feeling when buying things on credit than when paying cash, a feeling of being in the club, of being accepted, of being grown up.
7.Living in chaos and drama around money: Using one credit card to pay another; bouncing checks; always having a financial crisis to contend with.
8.A tendency to live on the edge: Living paycheck to paycheck; taking risks with health and car insurance coverage; writing checks hoping money will appear to cover them.
9.Unwarranted inhibition and embarrassment in what should be a normal discussion of money.
10.Overworking or underearning: Working extra hours to earn money to pay creditors; using time inefficiently; taking jobs below your skill and education level.
11.An unwillingness to care for and value yourself: Living in self-imposed deprivation; denying your basic needs in order to pay your creditors.
12.A feeling or hope that someone will take care of you if necessary, so that you won’t really get into serious financial trouble, that there will always be someone you can turn to.
