Bad Money Habits from Confessions of a Shopaholic

Have you ever found yourself in massive credit card debt, and wondered how it got that bad?

According to the Credit Card Association of the Philippines (CCAP), credit card delinquency has been on the rise in the Philippines. With the pandemic stifling businesses locally and abroad, more and more Filipinos are struggling to pay their monthly credit card obligations.

To make sure that your credit card bill doesn’t get any worse, here are some aha moments from Becky Bloomwood’s misadventures in Confessions of a Shopaholic:

• You don’t need to speak Prada to land the job of your dreams or to finally catch the eye of your beloved. There is so much more to you than just the branded clothes, top-of-the-line gadgets or that high-profile job. Spend more time celebrating how innately awesome you are, and less time justifying why you need that next big purchase.
• Don’t be a prisoner of your lies. Whether it’s to escape debt collectors or to create a fabulous first impression, innocent little lies eventually add up. It will require continuous lying and may put you in a constant state of paranoia. Lying may be more convenient now, but it won’t be when the world finds out.
• Don’t use shopping as an escape. When you’re feeling down, stressed out or anxious, opening your online shopping app may be able to give you temporary relief. The keyword here is TEMPORARY. As Becky describes it, “When I shop, the world gets better. Then it’s not anymore, and I have to do it again.”
• Do I need this? Before making a purchase, make it a habit to assess whether it’s a want or a need. You don’t have to ban all wants in your life, but you may have to say no to some of them — especially when you’re already in debt. (PS: Just because you have hands does not mean you need that branded cashmere gloves.)
• Credit cards are not as magical. They do get you what you want instantaneously, but remember that every peso charged to it needs to be paid back in full — and often with interest. As much as you want the credit card bills to disappear magically, they rarely do.
• Always have a backup plan. With a debt collector mercilessly hunting Becky down for payments, she lost her job twice. You can’t rely on your job to be there forever — companies close down, people can get fired, pandemics cause lockdowns. When that happens, what’s your Plan B?
• Security means different things to different people. To Becky, it used to be about being wrapped in designer clothing. To some, it’s about knowing that their families are well taken cared of in case of unforeseen events, such as a pandemic. Take the time to visualize what security means to you.
• Don’t be afraid to ask for help. If you’re in a money crisis right now, know that you don’t have to deal with it alone. Becky had Suze and the rest of Shopaholics Anonymous. Reach out to people who can help you out — and don’t expect them to just bail you out.

What other bad money habits and beliefs do you need to shake off?