8 Tactics to Break Cycles of Credit Card Debt | Smart Change: Personal Finances

Maybe you’ve given up on your debts, but history can repeat itself if you don’t disclose the motivations behind it. According to Julia Kramer, financial behavior and leadership consultant at Signature Financial Planning in Pennsylvania, a deleveraging plan that works in the short term may not be viable in the long term if it doesn’t align with your priorities. .

Kramer suggests tracking trades that are a week old or older. Add a plus sign next to purchases you’re ready to repeat and a minus sign next to those you’re not ready to repeat. For mandatory purchases like gas and groceries, add an equals sign.

Note the date, item purchased, amount, and need the purchase met. According to Kramer, those frequent lattes or meals with friends may be more about the personal connection experienced, or something else, as opposed to the gratification provided by the article.

This information is essential for identifying areas of your budget that are negotiable. For example, you may be more inclined to choose budget foods in order to maintain a facial that satisfies an internal need for self-care and connection, Kramer says.

If your spending goes astray through feelings like anxiety or boredom, make a plan for those occasions. This may mean budgeting extra money or using tricks like using a credit card lock feature to avoid spending.