Your IQ will not determine your credit score. it takes a lot more than just smarts to keep all your finances balanced. We often see people’s credit scores trouble due to life events gone awry. Some folks would max out credit cards while others seek fast payday loans online direct lenders in order to cover the extra demand on income. There are many uncontrolled variable within your finances. With that said, the controlled variables are often left unmanaged. If we don’t keep watch over our finances, a high IQ is not going to matter. Oftentimes, emotions are what tip the balance on a monthly budget. Even smart people experience emotions.
*Some people like to keep up with the Joneses. With so many neighbors and friends to keep up with, where does one draw the line? Buying what others have is a common trap throughout our consumer society. Who are you trying to impress with a fancy car in the driveway but have nothing in your savings account?
Do emotions drive you to payday loans online direct lenders?
*When we get anxious, depressed or have a reason to celebrate people will turn to something obsessive. Some people will eat and others will shop. If you can’t control emotional habits, your credit cards will keep the outspending moving until it all comes to an end. Do you stop at that point and evaluate your finances or do you find alternative solutions like online payday lender loans? Retail therapy is not cost effective. Relying on payday loans online direct lenders and credit cards to control emotions is very expensive.
*You are in love and it is a beautiful thing. Are you one of those people who find that buying gifts will show love? Some people use gifts as a love language. This means that gifts are bought for all loved ones not just significant others. Too often these expenses are purchased using credit cards. You may want to save your credit cards for emergency purchases instead. Build an emergency account and college fund instead of buying the latest gadget.
*Instant gratification on big ticket purchases. Long ago before credit cards we would have to save money in order to go on vacation or buy expensive items. The need to fulfill wants must be controlled if you want to keep your credit utilization score from sharply rising. Unless you have the money to pay in full, the large amount of new debt will lower your credit score.
*Living in denial of your debt will keep you happy in your current lifestyle…momentarily. You may not know how bad you credit is until one day you find it is no longer an option. Panic, desperation and vulnerabilities lead people to rash decisions. Bad financial decisions can linger within your budget for too long. If these choices come with interest fees attached, it can often be very destructive to any person’s monthly budget.
We all experience waves of emotions from time to time, how we manage them is often reflects on how money gets managed. Money is an important part of our everyday lives. Make sure your lifestyle fits into your budget. If your emotional spending is out of control, then you will want to find the root of the problems and work on them. A trip to the mall may feel good in that moment, but once the money is due, you’ll be experiencing a whole different emotion.
Do what you can to limit credit card and payday loans online loan usage to control how much money is wasted on interest. If you can at least limit debt totals then you will have money to use on necessary budget expenses. As soon as interest starts milking money out of your bank, your financial problems will bloom into a big mess. Will your emotions or IQ run your finances then? Think about what you need to do and work it out.