Chicago Bankruptcy Lawyer Blog

The overuse and abuse of credit cards poses perhaps the single most significant threat to your financial well-being. Let’s get real – when used improperly, credit cards enable impulse buying, mire us in instant-gratification mode, and skew our financial decision-making process.

Unfortunately, many of us have grown so accustomed to whipping out the plastic at a moment’s notice that it may seem impossible to overcome this habit. If you’re a hardcore credit-card junkie, imagining a life without that financial cushion can feel pretty bleak.

Like any deeply ingrained habit, overcoming your dependence on credit cards can be tough. But thanks to recent advances in the science of human behavior, we know now a lot more about how bad habits are formed – and how they most effectively can be dismantled. Rather than relying on the same old shopworn advice about only using your credit cards for emergencies, you can fall back on the research-backed methods that psychologists use to help people quit smoking or nix emotional overeating.

If you’re ready to make real changes in your financial life, you’ve got to make a radical break with the habits that got you into trouble in the first place. First on the agenda? Breaking the credit card habit for good. Here are some tips from top behavioral experts to help put you on the path towards a credit card-free – and debt-free – future.

• Set aside a month for “deprogramming.” It turns out that that old adage about habits taking 28 days to take hold is actually based in fact. Most scientists say that a span of three to four weeks of intensive effort is all it takes to jettison your bad habits and create new, positive behavioral patterns to take their place. Look at your calendar, pick a start date in the not-too-distant future, and commit to weaning yourself from the plastic habit within a thirty-day period. You might want to pick a start or end date that has personal significance to you, like your birthday or anniversary.

• Learn to identify your spending triggers. Therapists say that most compulsive bad habits are a kind of instinctive response to certain feelings, circumstances, or situations. Look back over your financial history. Which moods or scenarios usually precede your credit card binges? Figure out the emotions that usually send you into a spending frenzy.

• Substitute new habits. When you start to experience the feelings that once sent you running to the mall, turn to an alternate coping method instead– preferably one that’s not as damaging to your net worth. Whether your new thing is yoga, gardening, or video games, try your hardest to embrace it wholeheartedly, secure in the knowledge that you’re making a change for the better. It might feel awkward at first, but over time, turning to this alternate coping technique will come to feel like second nature to you.


• Set up -- and stick to – a reward system. Remember Pavlov’s dogs? For decades, behavioral therapists have sworn by the human brain’s ability to link behaviors with positive rewards through a process known as conditioning. To reinforce your new credit card-free lifestyle, develop a very specific reward system and follow it religiously. Whether you choose a sweet treat in the evening each day that you go without credit cards, a spa treatment at the end of a week of good behavior, or a big weekend getaway at the end of your deprogramming month, name your reward in advance and focus on it throughout the process.

• Use what you’ve learned in the rest of your life, as well. Although your deprogramming month should focus exclusively on breaking the credit card habit, along the way, you might notice some other bad habits that become glaringly obvious to you as you’re trying to turn over a new leaf. Behavioral therapists say that this process of good habit “generalization” is quite typical among those who have successfully worked through one bad habit. Once you’ve successfully overcome your plastic addiction, don’t be surprised if the techniques you’ve used begin to spill over into other parts of your life, as well!


How about you? If you’ve already broken the credit card habit, which trick helped you the most? If you’re still in the process of weaning yourself from the plastic, what’s the biggest obstacle that’s standing in your way? Share your story in the comments.

1. You only make the minimum payments on your debt.
If you only make the minimum payments on your outstanding debt, you're looking at close to 30 years to completely pay off your debt. All of that interest money should be going into your pocket; not your creditor's fat bank account.

2. You have to cut back living expenses to make your monthly debt payments.
Budgeting is a good idea, regardless of whether you have plenty of money or struggle to make ends meet. However, if you've had to cut necessary items from an already well-developed budget, you may be in debt over your head.

3. You've borrowed money to repay outstanding debt.
Whether you're borrowing from family and friends or taking out a 'payday loan,' borrowing money to pay debt just gets you further in debt, and may be a warning sign that you're in financial trouble.

4. You have to choose which payments to make every month, and run late on some.
If you can't make all your monthly payments but instead have to 'pick and choose' which of your creditors to pay, you may need help to get back on track.

5. You sacrifice health care because you can't afford it.
It may sound hokey, but your health is your most important asset. If you're cutting expenses on vital services like health care, you could be putting your health and even your life at risk.

6. You've defaulted on one or more outstanding debts.
Once you default on a debt, your credit report suffers and you may even be subject to a legal proceeding to collect or resolve the debt issue. Once you default, you may need legal assistance to resolve your debt problems.

7. You work two or more jobs to make ends meet.
In a world of increasing debt, it's becoming more and me difficult for many Americans to pay their bills with only one income. However, if you're working two or more jobs to pay your debt, your quality of life is probably suffering.

These are a few of the most common things people encounter when they're being overwhelmed by mounting debt. If you've noticed any of these warning signs in your life, don't worry: there is a solution. Regardless of your situation, a Free Financial Analysis at DebtStoppers can help you figure out a game plan to get you back on your feet.