Compulsive spenders are often the last to recognise that they have a problem, but if you are regularly overdrawn at the bank, or your total debt is more than 20 per cent of your annual take home pay, here are some useful actions you can take to control your spending.
If you shop mainly as a social exercise, look for new friends who play cards or golf, or join a choir or art class.
When you feel an urge to go on a spending spree, telephone frugal friends and ask them to talk you out of it.
Go on a 'spending diet' for a month. Shun department stores and shopping centres; switch off the TV when the ads are run; avoid glossy 'consumer' magazines and catalogues. Then count all the cash you've saved.
Cut up your credit cards and close your bank account. Carry only small amounts of cash on you at any one time.
When shopping is absolutely necessary, make a list of the things you need and buy only the items that appear on it.
Once you've got your spending under control, open a savings account and deposit 15 to 20 per cent of your pay into it every month; restrict yourself to withdrawing the accrued interest.
