Sad, but true… I absolutely LOVE buying jewelry. It’s almost an addiction. My husband doesn’t understand why anyone needs more than two pairs of earrings. So, I decided that I should open up a Visa card in my own name so that he doesn’t see what I spend on this. However, now I am out of control, and without knowing he is seeing the purchases, I have wracked up quite a lot of debt. I now have spent over $5,000 in the past 6 months. It just happened. What do I do now?
Oh goodness! Let me tell you first - you are not alone in this “addiction”. For some women it’s shoes! It could be worse if you had a gambling problem. OK, you are in a mess and the worst thing for your relationship is the dishonesty. It will be making you feel awful. So, what is the best approach? First of all, as difficult as it is, you really must tell your partner or spouse if you are sharing expenses and have combined bank accounts etc. If it is going to take some of your combined resources to address this issue, then it is only fair for him to be part of it. Telling him, may help you to curtail your future purchases, which you know you must do.
So, we want you to be able to address your debt problem first, and then when this part is fixed, we will build an account for you that will allow you to have the jewellery you want without going into debt – that’s the key.
- First of all, set a realistic goal to get rid of it. I don’t know the details of your flow so I can’t guide you with absolute numbers, but what I can say is that with that much credit card debt, you better get aggressive at paying it back. The lost opportunity costs would shock you. So, how about you set up a repayment plan that will allow you to get rid of it over two years.
- You need to stop saving, but only temporarily, and if you can sell some of your older jewellery that you aren’t wearing anymore, you may be able to get rid of it faster – try e-bay, Craigslist or Kijiji.
- Now, pretend you have this monkey off your back. Now I want you to reduce the credit limit on your Credit Card to $500! The bank will do what you want – this puts YOU in control.
- Now, start your savings plans again, but direct some of it to a special “jewellery account”, just for you and your future purchases. Maybe, based on how much you spent in 6 months, the budget should be maybe $200 a month. You must have enough jewellery now to last you for a year? I hope? Clear out the items you don’t use anymore and really take a close look at your long term wants and then decide if this is what you want to be spending your future on.
Remember, these are your decisions! You are in the drivers seat and have control, no one else! Manage your cash flow…..control your future
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