How Much Do You Owe on Credit Cards? Too Scared to Add It Up?

Financial problems are scary.

Almost life threatening because we rely on money to get our needs of shelter and food met.

Too much credit can put primary needs like food and shelter at risk because of the never-ending scramble to keep up with hefty creditor payments. Tackle your fear and you can tackle you credit problem. But first, you need to peel back the prickly skin of denial that has been protecting you from the reality of your financial situation.

Denial puts you at risk for in-action

It has been my experience as an insolvency counsellor, that one of the first ways people deal with credit problems is to use denial. Denial is simply not being truthful with yourself about your situation. In the early stages of a financial crisis, denial takes the form of not adding up how much debt is owed to creditors. This denial can provide a little bit of relief from financial reality, which often provokes feelings of fear and self-criticisms. Unfortunately, denial creates a bigger problem – in-action. And, remain in a state of inaction for too long and a little wave on a sandy beach turns into a mega tsunami of credit card debt and lines of credit heading your way.

In-action is fear based

In-action is one of the biggest hurdles I see with most clients and is often fear based a fear of food and shelter insecurity as well as a fear of acknowledging the internal dialogue about being a bad money manager. This type of self-criticism often attacks the core of self worth and self esteem. Therefore, denial has a powerful allure because it can keep these intense feelings and criticisms at bay but at the cost of your financial stability.

Consequences of denial and in-action

Unfortunately, there are two major consequences of denial. Firstly, because it keeps you stuck in the debt cycle of worry, relief, worry, worry and worry you are in an ongoing state of anxiety and stress. Anxiety and stress create physiological responses in the body that seriously impact one’s thinking abilities. Slowly, you can move away from pragmatic thinking to emotional and reactive thought processes.   Therefore, not only are you at risk for making more poor financial decisions but also at risk for poor decision making it other aspects of your life.

Secondly, denial deprives you of the opportunity! Yes, opportunity, to become a money master.   Embarking on the journey to taking control of your financial situation provides you with the opportunity to develop the necessary skills and abilities to be an effective money manger. This will create a big shift in how you feel about yourself potentially changing your emotional landscape.

The benefits of abandoning denial and in-action

So, what do you have to gain by adding up your debt so you know exactly what you owe?

  1. Reclamation of your ability to think clearly and pragmatically therefore making better decisions in all parts of your life
  2. Transforming your feelings of financial inadequacy to feelings of financial mastery
  3. Courage because you faced your fear and tackled your debt head on
  4. And, of course, you have taken the first step toward debt freedom

Your next step?

Pull out your most recent creditor statements and add them all up. This will give you the ability to determine what you need to do next. If you require help figuring out how to deal with your debt, call or email me and I can help you figure out your next step. There are solutions to most debt problems. I can help you determine what works for you.

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