Tip #98: Work on your emotional response to debt and money

Most of us carry a lot of emotional baggage with us when it comes to money.  We see money as a marker of success, or we see money as a way of making ourselves feel better, and these attitudes lead us to much of our financial and credit problems.  If we rely on money to make us feel successful, then we are apt to overspend.  If we fear money - or the lack of it - we are unlikely to save it or make investments with it. 

We need to be aware of the ways we respond to money and the ways that those responses shape the ways we deal with money.  Some financial experts recommend that clients keep money journals, in which they record their money hopes, their money fears, and their responses to spending and money.   A money journal can help you by showing you how feel about spending and about money.  If you can isolate the emotions that influence how you spend money and how you make your money decisions, you will be well on your way towards fixing your financial problems.       

Tip #99: Don’t mix debt with emotion and stay aware of your emotions

It pays to separate your feelings of worth and your emotions from your finances, especially when you are trying to repair your credit.  Feeling self-pity, shame, fear, or sadness as you try to repair your credit score won’t help you.  Staying calm and professional as you deal with credit bureaus and financial professionals will help you. If you need to, keep telling yourself that your credit score is just an important number.  Keep it separate from yourself and your emotional state as far as possible.

Bad credit can be emotionally trying, and boosting your credit can be daunting and difficult as well.  It is important that you keep track of your emotions during the process.  If you find yourself dwelling on your credit too much or if you find yourself severely depressed, seek help at once.  A credit problem is a fixable solution - do not let it become an emotional disaster for you.
 

Tip #100: Get help if you need it

Do not be afraid to ask for help - financial or emotional - if you need it.  There are a number of wonderful organizations that can help you if a problem is causing your credit problems.  If you have credit problems due to compulsive overspending, for example, Overspenders Anonymous can be a great help. 

If you suffer from a gambling problem, there are a number of charitable organizations that can help you overcome the addiction.  If you have accumulated debt as a result of these sorts of specific problems, you will not really be able to fix your credit rating unless you deal with the problems behind the bad credit.  Many good groups and therapists out there can help you. 

Find a recommendation for a good one from your family doctor or a trusted friend or family member.  You will be glad that you did.