Addicted to credit, or control?

On two separate occasions last week, I found myself in clothing stores making purchases on my credit card. Neither were hugely expensive; $40 for one, $65 for the other. But what’s worried me since, is the mindset I was in while making the purchases.

For various reasons that I won’t bore you with, I’ve been feeling a frustrating lack of control over some areas of my life recently. I believe making a purchase on my credit card was one way of retaking some power. As bizarre as it sounds, and as illogical as it may be, making a decision to buy something, taking out the plastic and assertively signing off my name on the receipt gave me a sense of power and control.

I’ve been perusing some of the stories over at www.creditcardaddiction.com, and it seems I’m not alone. Many people with credit card debt have gotten into trouble because of the purchasing power a credit card gives them. It affects people of all ages, but recent media articles about younger Australians falling into the debt trap suggest people who’ve grown up surrounded by the “buy now, pay later” mentality could be more prone to addiction.

Australians currently owe $44 billion in credit card debt – that’s an average of $3000 per person. And don't forget those high interest rates - that average of $3000 will be a lot more once you factor in 20% or more interest.

I don’t know that I could live without my credit card. Certain bills, such as rates and body corporates, have to go on the Visa. On my current wage, it would be very difficult to save enough so I could pay for these in cash. Having that credit card initially makes me feel like I’m in control of my finances, and able to make payments on time. The problem is, when you start having trouble paying down that debt, you can get into trouble. You may even find yourself completely out-of-control.

So what are the signs you’re addicted to credit? Ask yourself these questions:

*Do you ignore your monthly statements, and forget to cross-check purchases?
*Do you only repay the minimum monthly amount?
*Do you make snap purchases, rather than save up and only buy necessary items?
*Do you have multiple credit cards – and are you using one to pay off the balance on the other?
*Do you believe someone else will pay your debt off for you one day?
*Does using your credit card give you a sense of power and control?

If you said YES to most of these, then chances are you’ve got a habit.

Do you think Australians are addicted to credit? Have you got a problem - and if so, what made you realise? And how much do you think "power and control" has got to do with our love of the plastic?