The Psychology of Bad Credit

The mindset of damaging our credit can be attributed in many cases to the same basic nature found in many self-destructive tendencies, and many of these have a basis in psychological addictive behavior disorders. Knowing that we are surpassing our limits by overextending ourselves is in many ways the same as the alcoholic thinking that the first drink will be all right, or the gambler going for one more big hand of cards or one more big roll of the dice. In fact, society as a whole has taken on the overall viewpoint of wanting more, to the point that it becomes akin to an addictive personality. "A fool and his money are soon parted" has taken on a whole new perspective in modern society. Enjoying something now and paying later has become a dangerous norm. Cash on the barrel head has almost completely lost its meaning. "Credit is King" is the new coin of the realm. Many believe that money (or at least our present monetary system) may soon become a thing of the past. But even considering this, the payment will still come due.

From a very young age, we are conditioned to want more. Status and authority is an achievement to be admired. Much of our status is ultimately determined by what we have and own (our possessions). The credit mentality of having things now and worrying about paying later becomes an addictive behavior. In fact, in many cases, it becomes a vicious cycle. One that ultimately ends in" hitting rock bottom".

This is not to say that all excess spending can be directly attributed to the type of addictive behavior described above. The rising costs of house, transportation and gas prices, food, and health care, all contribute to our own economic pitfalls. The "want" in this equation becomes one of need. But in all, this too may ultimately lead to a depressive state in which we simply say "I just don't care", thus leading back to the vicious cycle.

Is there an answer to all this? Many of these factors are beyond our control. The parts that are within our control are our responsibilities. The question is, do I accept this responsibility? Just like with any addictive behavior, the "rock-bottom" can be viewed as a new beginning. For every ending there is a new beginning is a good way to look at it. Come up with a plan. The true power of any 12 step program lies in the plan to counter those old habits and replace them with attitudes and actions directed towards repair and growth. This is the same mentality needed to repair our credit.

The first step is admitting our powerlessness over our condition and that our lives are unmanageable. Like that first drink, the next" shiny object" is not the answer to make our lives better or more tolerable. Turning our will over to a new attitude or way of thinking is the beginning of the solution. There are no quick fixes or if there are, they are just that.... quick fixes, here and then gone. They do not change the mindset that got us into trouble in the first place.

In this circumstance, this begins with getting a credit report. Like an inventory, this gives us a clear image of what we have done wrong and need to make amends for.

The next step is choosing a sponsor. This may take the form of finding a software program to guide us in our effort to repair our credit, or in finding a professional credit repair organization to do so. Debt consolidation may be another important aspect in our plans, or in this case, another form of sponsorship.

In summation, damaged credit takes on many of the personality traits found in any form of addictive behavior. To repair this, a solid plan of action must be initiated and carried out to the point of not only credit repair, but also a daily inventory of our actions to attain and maintain a solid financial stability. Keep it simple, one day at a time.