Originally posted by MSbklawyer
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Depends what you mean by 'shopaholism'. I suppose that excessive credit card debt could be considered a symptom of 'shopaholism' or a form of it. But then, $5K of credit card debt is not 'excessive' if you're earning 6 figures, but it can quickly become 'excessive' if, the next day you're earning 0 figures.
In my practice I have quite a few clients who just charge up more on their credit cards than they can ever afford to repay before they realize it. They get this "Platinum" credit card offer in the mail -- with "Double Rewards" no less -- and a credit limit of around 25% of their annual earnings, and they accept it. This gives them an illusion of wealth. Which restaurant should we eat at tonight, honey? Disney World? Well sure, why not. The statements come in -- no big deal, the minimum payment is only $50 -- which is what they pay. Then, when the stark reality that they have to repay all this "wealth" begins to intrude, because their interest on the debt alone is chewing up a substantial part of their income, they seek bankruptcy. How's that for a "Double Reward"? If that's what you mean by 'shopaholism' then yes, at least in my practice, it is a substantial contributor to personal bankruptcies.
Sometimes, but far less often than the former scenario, I have clients who sit in front of the TV all day with a quart of Haagen Dazs and order every $19.95 piece of trash that gets thrown up on the screen. To these people, it's a compulsion and they just can't pass up on buying "A Fifty Dollar Value!!! But Hurry!!! Supplies ARE limited!!!" every time they see it. Every member of their family has a Shamwow! or 6. They literally paid $20 for a rag. Plus shipping and handling. If that's what you mean by 'shopaholism', -- I have other words for it-- then no. It happens, but not often enough to be a substantial contributor.
In my practice I have quite a few clients who just charge up more on their credit cards than they can ever afford to repay before they realize it. They get this "Platinum" credit card offer in the mail -- with "Double Rewards" no less -- and a credit limit of around 25% of their annual earnings, and they accept it. This gives them an illusion of wealth. Which restaurant should we eat at tonight, honey? Disney World? Well sure, why not. The statements come in -- no big deal, the minimum payment is only $50 -- which is what they pay. Then, when the stark reality that they have to repay all this "wealth" begins to intrude, because their interest on the debt alone is chewing up a substantial part of their income, they seek bankruptcy. How's that for a "Double Reward"? If that's what you mean by 'shopaholism' then yes, at least in my practice, it is a substantial contributor to personal bankruptcies.
Sometimes, but far less often than the former scenario, I have clients who sit in front of the TV all day with a quart of Haagen Dazs and order every $19.95 piece of trash that gets thrown up on the screen. To these people, it's a compulsion and they just can't pass up on buying "A Fifty Dollar Value!!! But Hurry!!! Supplies ARE limited!!!" every time they see it. Every member of their family has a Shamwow! or 6. They literally paid $20 for a rag. Plus shipping and handling. If that's what you mean by 'shopaholism', -- I have other words for it-- then no. It happens, but not often enough to be a substantial contributor.
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