These unspoken truths could be the ones that we hide from our friends or family, but even more damaging are the truths that we hide from ourselves, especially the financial truths that remain buried. Joanne in the above example hides the truth that she is willing to spend to the point of harming her wellbeing as the stress of this addiction begins to set in. She carries with her a layer of denial that keeps her in this addiction accompanied by a stream of justifications, such as she can always refinance her home to pay off her cards or there is a raise coming within the next six months that will be the solution to her unspoken problem.
Over the past ten years most of us have seen a generous increase in the value of our homes. This coupled with a more lenient lending strategy by the banks, has allowed many to over-spend using credit cards and then consolidating using newly acquired equity. Most department stores carry their own credit cards because they know what studies have already proven—that as a consumer, you will most likely spend more if you can charge your purchases.
The way out of a spending cycle is blatant honesty with oneself. Telling the truth and nothing but the truth to yourself. Put the truth on paper. Accurately list every debt you owe. Start tracking how and when you’re spending your money. Go through your credit card balances and categorize, noting purchase dates. This exercise will tell you when and where you’re most at risk for overspending, and if you have developed habits in the course of your life that use more funds than you have available. The consequence of avoiding the truth will eventually lead to fewer resources such as less equity in your home or less money in savings and keep you in a state of financial stress.
