As we near the end of our MULA series, I want to encourage you to take a few minutes and honestly answer the following questions.
I found the following test on pages 153-154 of Ron Blue’s, “Taming the Money Monster.”
1. You spend money in the expectation that your income will increase in the future.
True____ False____
2. You take cash advances on one credit card to pay off bills on another.
True____ False____
3. You spend more than 20 percent of your income on credit card bills.
True____ False____
4. You often fail to keep an accurate record of your purchases.
True____ False____
5. You have applied for more than five credit cards in the past 12 months.
True____ False____
6. You regularly pay for groceries with a credit card.
True____ False____
7. You often hide your credit card purchases from your family.
True____ False____
8. Owning several credit cards makes you feel richer.
True____ False____
9. You pay off your monthly credit card bills but let others slide, such as doctors’ bills and utility bills.
True____ False____
10. You like to collect cash from friends in restaurants and then charge the tab on your credit card.
True____ False____
11. You almost always make only the minimum payments rather than paying your entire credit card bill.
True____ False____
12. You have trouble imagining your life without credit.
True____ False____
Now score your responses. How many times did you answer true?
1-4 True. You can probably keep going. You don’t splurge uncontrollably.
5-8 True. Slow down, you have entered the caution zone. It’s time to draw up a budget, pay off your bills, and reevaluate your spending habits.
9-12 True. You have to stop. You might be wise to consult a credit counselor or financial planner for help in changing your spending habits.