Are you a chronic over spender? Are you financially in the hole as soon as you get paid? Do you regularly charge items such as food, gas and clothing when you used to pay for them with cash? Continually living beyond your means can spell disaster. While you may feel like you are ahead of the game, temporarily fueled by a highly inflated standard of living, there will come a time when debt will come knocking on your door.

Here are some of the consequences associated with chronic overspending patterns.
 
1. Your future income is already spoken for.

When you consistently spend more than you make each month, your spending increases and so does your debt. In essence, you have essentially attached a heavy ball and chain to your future earnings.

The greater the share of your income already claimed for future debt repayment and the interest that goes along with it, the less money you have to accumulate wealth, have fun, travel, and just do the things you really want to do with your life.

Now...is that $800 designer handbag really worth all the future pain and suffering that’s going to come your way? I think not!

2. Overspending becomes a habit.

As you continue to overspend, not only do you accumulate more debt, you develop an addiction to an extravagant lifestyle you really can't afford. You get used to spending the extra money.

Eating out several times a week, buying a new wardrobe every six months, hiring a personal trainer to help you stick with your New Year's resolution suddenly all become necessities instead of what they really are - luxury expenses.

When you finally decide to start living within your means (or worse, you are forced to) at first, life is going to seem unfair.

3. Higher levels of anxiety and stress

Living paycheck to paycheck is stressful in itself. Being in the hole before you get paid is worse. Being in denial about the truth of your financial situation does not relieve you of the stress. It just means you feel stressed while you attempt to avoid reality.

You may put off dealing with it for a short time, however, one day you will have to pay the piper!

4. Increased risk of homelessness.

Without a financial cushion to fall back on when unexpected expenses arise, you are literally one paycheck away from being homeless. An unexpected illness or job loss could send you over the edge. The only difference between someone without a financial cushion and someone who is already homeless is a few months without a job.

5. Physical and mental clutter.

Growing stacks of bills equals increasing stacks of clutter. More physical clutter means more mental clutter as well. First, you have to figure out where to put the bills. Second, you have to figure out how you are going to pay the bills. Third, you have to try and remember when the bills are due. Forth, you have to file the bills once they've been paid.

Repeat this process ten or more times each month and you have essentially created a lot of extra work for yourself in the process.

6. Less likelihood of owning your own home.

The higher your debt to income ratio is the less likely you are to qualify for a home. Based on your current financial status, if you were a banker, would you consider yourself a good credit risk? If not, why not?

7. Ball and chain.

Excessive debt prevents you from living life on your own terms. Perhaps you'd like to start your own business or change careers. Maybe you'd like to travel to exotic places, pursue your favorite hobby, or buy a motorcycle.

Too much debt not only kills your bank account, it also kills your dreams!

Chronic overspending is not a way of life, it is road to ruin. Understanding the consequences of overspending, and doing something about it, can save you years of heartache and frustration. Do yourself a favor and pay off your debt before it becomes a crisis.

Kathleen Bren is a certified Career and Life Coach who specializes in helping coaches, consultants and solo-preneurs get out of debt, make more money, and have more fun! Her latest book, Ditch Your Debt: From Zero to Hero in 7 Easy Steps is a detailed, step-by-step program to getting out of debt and living a more prosperous life. Find out more at http://www.kathleenbren.com/ditchyourdebt.htm