Another point of view

This morning, I was watching a show with a prominent financial expert. She was asked a question by one of the hosts. The question was:

Question: You said that this is a transformational moment for our society. It's time to pay as you go. Don't whip out the credit card.How do you change that (charge it on my credit card) mentality, it's in your DNA?


Answer: The psychology of it. It's in your DNA but the credit card companies will be changing that mentality for you because as I just said as few moments ago they will be reducing your credit limit revoking your credit lines, taking away your home equity lines of credit, so you will not have the credit line available.

I would like to share the answer that I would have given, had he asked me. It is a very good, and insightful question. It shows that they have been taking this crisis and his own financial health seriously.

My answer is this: The reason people whip out their credit card for things they can't actually afford is because they want to numb and compensate for some emotional pain that they are going through. They may not even know that's what they are doing. It may seem like using their credit card to cope is 'just how life is'. But when someone takes a moment to investigate what they are feeling right before they make that credit card purchase, or if they reflect back on the financial choices made to live beyond their means, they will find some negative or uncomfortable emotion they have been avoiding. In order to change someone's financial DNA, it starts with them feeling those uncomfortable emotions. Ironically, in feeling the emotions, you free yourself from them. Then, I suggest investigating what thoughts you think about money and yourself that cause the negative emotions. Once they are identified, you can choose to replace them with new, positive, better-feeling thoughts about money and yourself.