This week we conclude our series on people afflicted with serious cases of ‘Crazy Consumption.’ They exhibit uncontrollable urges to shop, many times ending up in devastating debt. In desperation, they search for solutions to cure them of their out-of-control spending lifestyle.

Sharon* shares her story of how living in the past has caused her to spend unwisely in the present, leading to a bleak financial future.

Sharon’s Story:

I am a mother of three and I think I’m a spendthrift. I will buy things like groceries and necessities but after that I just spend like money is water. I know I need to slow down because my first child is going to high school now and the second will be going in two years’ time. Right now I’m in debt up to my head top and even though I’m in debt I still take on more.

My take-home pay is about J$14,000 every two weeks. Although the money isn’t much I still end up wasting some of it on things I don’t need. When people come around with things to sell, I can’t resist them. Sometimes I think that I am ‘red eye’; or that I’m buying things to make people think I can afford them, but in reality, I can’t. Please give me some advice on how to monitor my spending better.

The Bigger Picture

Sharon explained that although her earnings were small, she received assistance from the children’s father who lived overseas. However, she couldn’t always depend on his help and she was concerned that she sometimes had to borrow to make ends meet. She currently wasn’t able to save anything, and it made her frustrated that she still couldn’t control herself from wasting the little she had.

Looking back at her past, Sharon revealed that she was actually accustomed to a better lifestyle. Two years ago she was earning a great salary as a supervisor, taking home over J$20,000 weekly. However, that ended when the owner of the company migrated and made everyone redundant. She used to save consistently, but her savings were depleted after being without work for nearly a year.

Sharon said that she hated to think back on the ‘good old days’. It made her sad that she couldn’t afford to live the way she wanted to, and it hurt that her children would sometimes make comments about what they used to be able to do when she was better paid. She remembered that when she was small she usually got everything she wanted as she admitted that she was spoilt by her parents.

On the positive side, Sharon noted that most of her debt came from borrowing to go back to school. She had already passed several subjects and would be completing more next year. Sharon recalled that although she didn’t have all her qualifications at the previous job, she was consistently promoted because she had a natural ability to communicate with all kinds of people and she was well-liked.

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The Cure

It seems that Sharon is in denial that due to her present circumstances, she can’t afford to live the lifestyle to which she had become accustomed. She doesn’t appear to have a chronic consumption problem – her excessive spending may be an attempt to re-live her past glory days.

Although she is currently in a job that doesn’t pay her what she’s truly worth and has no room for growth, Sharon hasn’t tried to get a better job. She says that she sometimes feels that she’s given up and is too depressed to try. We changed her outlook by focusing on the fact that she is a big asset to any organization and that if she had succeeded in the right job in the past, she could do it even better this time around. We looked at creative strategies to network with her past customers in order to find employment opportunities.

We also concentrated on ways to regain control over the money she currently has. Sharon needs to rebuild the strong financial foundation of the past by saving regularly again. If she makes this her goal, she will be less likely to spend carelessly.

She committed to:

1. Make contact with past customers who appreciated her quality service
2. Send out creative resumes that would get her noticed
3. Resume saving a small, consistent amount every week
4. Involve the children in her efforts to improve the family’s financial situation

Sharon said that she now felt empowered to turn around her life and take back control of her finances.

The good news is that Crazy Consumption can be cured. If you are concerned about your spending habits, first try to discover the root of the problem. If you can’t figure out a remedy on you own, get professional advice from your financial institution.

* Name changed upon request