SavvySugar

Maxed Out: Binge Shopper Fills Void by Using Credit Cards

SavvySugar — Mon, 15 Sep 2008 12:30:34 -0700

This episode of Maxed Out is about Alicia, a 30-year old woman who works in advertising and has trapped herself in a pattern of binge spending. A couple years ago she was $20,000 in debt and got a consolidation loan she got to help her pay it off. After paying down about $10,000, she started using credit cards again and increased her debt load to $20,000 once again. Alicia maxed out three credit cards in just two months, and Allison Griffiths develops a plan to help Alicia regain self-control. Find out what happens with Alicia's debt problem when you read more.

Her two biggest problem areas are eating out and shopping, and she estimates that any given shopping trip could total between $150 and $500. Alicia says she's filling a void by shopping and admits that she doesn't feel like getting up on days she can't spend, but springs out of bed when she knows there's room on a card and goes straight to the mall.

Allison calculates that Alicia has a monthly shortfall of $720, and at the rate she's going it will take over five years to pay off her debt. Allison suggests that another consolidation loan is in order and will save Alicia $3,000 in interest and cut the amount of time it will take to pay off her total debt. Along with the loan, Allison puts Alicia on a shopping diet where she must put an item on hold for 24 hours and then go home to fill out a shopping questionnaire, tells her to track her spending, and asks her to think of another way to fill her void.

Alicia is able to break the cycle of spending, debt, and regret, and ends up with a monthly $420 surplus. She tries to fill her void by volunteering instead of shopping, spending her time with a program called Dress Your Best that helps low-income women put outfits together for job interviews.

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I'm Asking: When Was the Last Time You Had Buyer's Remorse?

SavvySugar — Wed, 23 Jul 2008 11:08:48 -0700

Buyer's remorse sets in when we second (and third, and fourth) guess ourselves after making a purchase that usually falls more in the want than the need category. Sometimes it leads us to dragging ourselves back to the store and returning the item, and other times we simply get past the feeling with some clever rationalization. Can you remember the last thing you purchased that made you kick yourself with buyer's remorse?

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Your Two Cents: Is Compulsive Buying a Mental Disorder?

SavvySugar — Mon, 30 Jun 2008 12:33:06 -0700

Buying things to make yourself feel better, getting the high for a short while, coming down with hateful guilt, and repeating the process until you're deep in debt is the basis for compulsive buying. It's an addiction that millions of people struggle to overcome and there are support groups like Debtors Anonymous to aid in recovery. According to a study in the American Journal of Psychiatry, 5.8 percent of Americans suffer from this kind of compulsion.

For years the American Psychiatric Association has been discussing including compulsive buying in its manual of mental disorders - do you think it should be identified as such?

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How to Overcome Buyer's Remorse

SavvySugar — Wed, 26 Mar 2008 14:36:21 -0700

That regretful feeling we know as buyer's remorse has a way of getting into the heads of most shoppers I know. And it doesn't seem to distinguish between well-off pocketbooks versus struggling ones - remember in Clueless when Dion asked Cher, "Dude, what's wrong? Are you suffering from buyer's remorse or something?" Cher responds, "God, no! Nothing like that." Because buyer's remorse is, like, a totally serious thing. To find out how to battle buyer's remorse just read more.

There are really only two options to get rid of remorse: either return the item or simply learn to accept your purchase. If you choose the latter, put the item to use immediately because once you've gotten something out of your purchase you'll start feeling less like you want to kick yourself. Whichever direction you choose, make your decision quickly. What's the point in stressing about an article of clothing or a pair of shoes? We have so many other things weighing on us at all times and buyer's remorse should be the last thing giving us premature wrinkles.

A quick Google search of the term generated hundreds of results, but interestingly most were aimed at stores and services with tips on how to prevent buyers from returning goods. All of them were dishing the same advice: provide your customer with reassurance and confirmation that they're making the right choice. One familiar tactic involves a follow-up contact that makes you feel appreciated, and in turn your positive feelings are directed toward your purchase and the provider of your new item.

Do you have any unique tricks for overcoming purchases lacking conviction and filled with regret?

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Do You Spend More When You Shop With Friends?

SavvySugar — Sat, 19 Jul 2008 08:30:50 -0700

Whether we like the stereotype or not shopping is a pretty common pastime for some women.

I always think it's nice to have someone nearby to help you second guess your purchases, but my best friend often complains she buys more when she's shopping with a friend. Maybe it's the compliments, or maybe it's that window-shopping feels silly when you are with another person, but if you're not careful, you can end up battling buyer's remorse.

Do you spend more when you shop with friends or do you stay strong to your budget and what you set out to buy (or not buy)?

Photo courtesy of NBC