Thursday, November 19, 2015, PM | Leave Comment
People don’t go into debt overnight. Rather, it’s a gradual process that seems to sneak up on people. To help you avoid falling into the debt trap, here are the five mistakes that put you into debt quickly, in addition to some tips on how to avoid them.
Procrastinating On Tending To Outstanding Debts
For a lot of people, the concept of actually contacting the people they owe money to is extremely scary.
Many people get into a routine of just ignoring bills and past-due notices until they’ve piled up and are unmanageable.
If you’ve already dug yourself into this hole, there’s still hope, but you’ll need to contact a good bankruptcy lawyer to discuss your options.
Store Cards And “Bad Credit” Cards
Avoid store cards and credit cards that specifically designed for people with bad or no credit.
Both of these cards carry with them ludicrously high APRs and astronomical yearly fees.
Not Keeping Track Of Your Spending
Not everyone goes into debt because they were buying extravagantly.
In fact, the average person goes into debt from too many “little purchases” that begin to really add up.
If you start keeping track of your daily spending habits, you’ll start to see how fast your money really goes, even when you’re only spending it five or twenty dollars at a time.
Spending More Than You Can Currently Afford
Never spend more money than you have at this very moment. Many people rely on credit cards to cover purchases that they’re confident they will be able to repay come pay day or tax refund season.
What they fail to realize is that once they pay off their current debts with that money, they’ll have to utilize debt yet again for future purchases and they’ll be right back where they started.
Living Outside Your Means
You can fault people for wanting to keep up with the Joneses, especially in an era where everyone wants to outshine one another on social media.
However, living beyond your means is the fastest way to get into debt.
It’s a good idea to be honest about yourself concerning what you’re spending in comparison to what you’re bringing in income-wise.
There’s no shame in admitting that you can’t afford something.
If you avoid these classic mistakes, you’ll avoid falling into the debt trap.
If you’re already in debt and feel like you’re drowning in a sea of bills, contact an attorney to discuss filing for bankruptcy (http://jpetermanlegalgroup.com/).
There’s no shame in admitting that you’re in over your head and seeking help.
The alternative, ignoring the problem and hoping it goes away, is far worse.Facebook.com/doable.finance