The seven deadly sins of spending

Credit facilities create a false sense of security: because we can't visualise the money, we don't feel bad about spending it, so they remove your emotion to money.

REPENT: Only take cash out when you go shopping - it's far harder to part with real money than sign your name on a printed receipt. Empower yourself by calling your bank to cancel any increased credit - you'll feel so much better when you hear how they try to persuade you otherwise.

SIN: Because we can
We shop for pleasure because we can. And we don't do it alone: we co-ordinate social calendars with friends and family and make a whole day of it. By shopping as a team, we're more susceptible to impulse buying and being persuaded to treat ourselves to products we don't need. By encouraging another to spend frivolously, we don't feel so guilty about doing it ourselves. Retailers are wise to this and target many displays specifically at social shoppers; coffee shops in department stores are a perfect example.

REPENT: For ultimate shopping satisfaction, shop alone, or with one trusted frugal friend, and return home at the point when you have your planned purchases. If you must go as a group, split up and arrange to meet in an hour or two when you have what you need. You will be more likely to stick to your list, without getting distracted!

SIN: Escaping problems
If your love life has taken a turn for the worse or you're in the midst of a conflict at work or at home, then you'll probably be looking for a welcome distraction and something you think will make you feel better.

A new hairdo, a manicure, or a whole new outfit may seem like the answer, but will the high it brings you make your problems seem less important? No. Research by Barclaycard shows that once we've finished shopping, our mood levels can drop by 27 per cent, and that many women who buy on impulse, later regret it.

REPENT: Endless splurges aren't even a good short-term answer to forgetting your problems - in fact they make them worse. If you really need relief, try pampering yourself at home: it can be just as rewarding, and what you really need is some 'me' time. Then deal with your issues head on - you'll respect yourself more if you do, and your finances won't have to suffer.

SIN: Holidays
They don't call it the Tourist Trade for nothing. It's a multimillion-dollar industry and we all get sucked in. Those cheap castanets and one-off diamond anklets might make the perfect holiday memorabilia? but then, so do the memories of the nice restaurants, the posh hotels and the cab rides home. As our bank balances dwindle, the profits of the tourist traders boom.

REPENT: Retailers use the same marketing tricks the world over. Just because you're on holiday doesn't mean you should drop your radar for retail deviancy! Make sure you are fully aware of exchange rates before you go, then set yourself a daily budget based on this.

Overall, don't give in to temptation by clogging up your credit card with impulse buys; you're only lining someone else's pockets with the interest you'll have to pay back.

*Resources

• Source: Bank of England
• National Consumer Council
• Source: Helga Dittmar, Psychologist from Sussex University

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