Bad Habits That Are Leading You Into Debt

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Debt sucks! You probably don’t need us to tell you that fact, but as a warning, some of the consequences of debt include…

- The effects on your mental and emotional state
- The loss of financial freedom
- A poor credit score
- Possible repossession of material things, and even bankruptcy

Depressing, isn’t it! Now, there are things you can do to get out of debt if you have fallen into the trap. You can…

- Start to budget your money properly
- Come to an agreement with your debtors
- Seek help from a debt-relief charity
- Use credit restoration services

However, while there are ways to help yourself should you fall into the pit of debt, you should still make every effort not to get into a financially rocky position in the first place. To ensure you feel financially secure, look at the following habits that could lead you into debt, and make every effort to avoid them.


                                                    Avoid these bad habits

• Not having an emergency fund. Set aside some money each month, just in case you fall into difficulty. You never know when an emergency will happen - your car breaks down, you lose your job, your home needs sudden repairs - and if you don’t have the money to deal with them, you may be forced to take out a loan to manage the problem.

• Spending more than you earn. You need to live within your means - not spending more money each month than you can afford. Squandering your money is going to lead you into trouble, and using your credit cards to pay for bills when your income can’t cover them, is going to send you over the edge financially. Budget what you have - and if you can’t cover your expenses - look for ways to lower the costs.

• Making late payments. When you make late payments on bills or credit cards, you are going to cause a bigger headache for yourself. Your credit score will be affected, and you may be hit by higher rates from your creditors. If you know you can’t afford to pay something on time, speak to the company involved as soon as possible, as they may grant you some leeway. Automate your payments too, especially if you are prone to forgetting those all-important payment dates.

• Not getting insurance. You will never fall ill. Your home will never be burgled. Your car will never get involved in an accident. Poppycock, of course. Never ever think you are safe from harm. You are not infallible, and trouble may be just around the corner. If you are adequately insured, your back will be covered, and certain expenses will be alleviated. If you’re not...say hello to financial misfortune.

• Procrastinating. Don’t leave it until tomorrow to invest into a retirement fund. Don’t leave it until tomorrow to ask for financial help. Don’t leave it until tomorrow to tear up your credit cards. Don’t leave anything until tomorrow that is going to cause you financial harm in the future. What we are saying is this: sort out your financial well-being today!

If you don’t want to fall into debt, ensure you avoid the bad habits we mentioned. Form good habits instead - spending wisely, budgeting, asking for help - as these will stand you in better stead now and in the future. Take care, and thanks for reading.