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Overspending and Under-Saving is Actually the Same Problem

The January poll hosted on Apprisen’s website asked consumers if they had a spending problem, savings problem, neither or both.  The overwhelming majority, 62%, identified themselves as having problems related to both spending and saving.

“The good news is that having a problem with both spending and savings is actually just one problem - spending,” said Jana Castanon, spokesperson for Apprisen. “The bad news is that overspending is often tied to deep-rooted behavior, making it very difficult to change.”

Consumers are showing signs of a willingness to begin spending again, as according to Gallup, monthly spending hit a four-year high this past December. As further proof of an increased comfort level with spending, the National Retail Federation projected that Super Bowl spending would likely reach $12.3 billion this year, or close to $70 per consumer related to this one event. The spending wasn’t confined to chips, dips and wings, but extended to big ticket items with 7.5 million households expected to buy a new TV for the big game, compared to 5.1 million last year.
Apprisen cautions consumers that they may have jumped back into spending at the wrong time. Since paychecks are now smaller due to the increase in the Social Security payroll tax, increased spending, coupled with less money available, is an obvious recipe for financial disaster.

The foundation of financial stability is to spend smartly and save regularly. When spending becomes an impediment to saving, it needs to be recognized and dealt with.

To help identify the danger signals associated with overspending, Apprisen encourages consumers to consider the following 10 warning signs to determine if spending is under control or out of control.  People identifying with these actions are advised to seek help immediately, as the problem will not resolve itself.

  • Hide purchases from others. 
  • Bills paid late or ignored. 
  • Checking accounts routinely overdrawn. 
  • Use credit to maintain your lifestyle. 
  • Don’t know where your money goes. 
  • Unaware of how much money you owe to creditors. 
  • Buy things just because they are on sale. 
  • Shop to relieve emotional stress. 
  • Financial goals are not defined. 
  • Afraid to check credit report and score.

People identifying with these actions are advised to seek help immediately, as the problem will not resolve itself. You can make an appointment for a free consultation with a certified financial counselor at Apprisen to receive an action plan for help getting back on track.

The actual January poll question and answer choices are as follows:

I admit to having a
A. Spending problem = 11%
B.  Saving problem = 15%
C.  Neither = 12%
D.  Both = 62%

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Apprisen, a national nonprofit credit counseling agency, has been helping consumers manage their finances and get out of debt for over 55 years. Certified counselors provide money management and debt counseling, HUD-approved housing counseling, and financial education. Services are provided in 10 states through local offices and nationally by phone or via the Internet. The oldest nonprofit credit counseling organization in the country, Apprisen was formerly known in its local communities as Consumer Credit Counseling Service (CCCS). Accredited by the Council on Accreditation (COA), CCCS is a member of the National Foundation for Credit Counseling (NFCC), the Better Business Bureau (BBB), and AICCCA. Information is available 24/7. Call 800-355-2227 or visit the website, www.Apprisen.com. You can "like us" on Facebook at www.facebook.com/Apprisen and follow us on Twitter at www.twitter.com/Apprisen.

 

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