These Habits Get You In Debt
Staying out of debt isn’t generally just matter of luck. It’s a matter of habits – good financial habits versus bad financial habits.
Habits that get you in debt include:
1.) Using a charge card for anything other than emergencies…unless you can pay your charge card off in full every single month. Once you get into credit card debt the high interest payments make it very hard to get out.
2.) Not having a budget and a plan. You will get into debt quickly and have a very hard time getting out if you don’t know: how much your total monthly expenses are, and how much your monthly earnings are; and how much you are actually paying in bills every month. If you owe more than you earn, this is not an impossible situation. You have options. You can contact your creditors and negotiate lower payments, you can take on a second job, you can if necessary declare bankruptcy and start fresh.
3.) Not including “savings” as one of your monthly bills. As the old saying goes, pay yourself first. Make that an absolute priority. Especially these days when job security is a thing of the past, setting aside a few hundred dollars a month in savings is a necessity, not a luxury.
4.) Being unable to distinguish “needs” from “wants”. You do not NEED a salon haircut, a visit to the manicurist, a night out at the movies, an expensive vacation, a luxury car, a brand new designer outfit. You need food, shelter, utilities, transportation, and clean clothes that fit.
5.) Hiding from your debt problem. This will lead to late payments, missed payments, ruined credit, and it will make it much harder for you to climb back out of the debt hole than if you had simply paid your debts in the first place.