From an article “Bankruptcy Caused by Credit Card” I read recently, it mentioned that such cases of bankruptcy have been increasing since year 2000. So, please don’t abuse your credit card. And it emphasized that how far you can stay away from such problem depends on how good you can keep your emotion from affecting your expenses.
Perhaps, someone would tend to buy something as a “gift” for himself/herself when feels happy or in good mood. On the other hand, when she feels unhappy, then she may try to release her stress and unhappiness through money or shopping. Such behaviors will potentially make your money gone at a glance.
Here is a real case I read from that article, a wife have encountered conflict with his husband. Hence, she preferred to keep on shopping for temporarily keep such problem out of her mind. Indeed, she knows that is not a wise idea. But, she can’t control her emotion. Finally, she made a huge amount of debts from 10 credit cards.
Besides, we should be able to differentiate between the “needs” and “wants”. You may always think that it’s easy to differentiate “needs” and “wants”. Yup! It’s easy to know the theory, but in action. This is because human are easily controlled by their feelings and affected by their environment such as friends and etc.
For an example, Thomas works as a sale person with monthly salary about RM2600 who travels everywhere from day to night. And he needs a transport for him to travel. Hence, he had decided to buy a car. Finally, he bought a car XYZ (Price: RM120, 000) with monthly payment about RM1600 for about 7 years. Sincerely, he needs a car; but does him really need a car XYZ? Or more precisely, he wants a car XYZ? Obviously, the desire on material has over the basic need and the financial ability. This is the origin of never ending and heavy debts. Obviously, his emotion has now gained control over his money.
