Wednesday, October 21, 2020

The Bad Habits That Will Keep You Trapped In Debt


(Unsplash CC0)

If you're in debt, know that you're not alone. In America, for example, 80% of people are reportedly in debt, according to one financial article.

In a lot of cases, debt is a necessary evil, as it can be instigated by business startup loans and homeowner mortgages. These account for a high proportion of the debts that many people have to cope with.

However, our bad habits can also drive (and keep) us into debt, and the same could apply to you. To get out of debt, you might need to change your money mindset, and quit those things that are not helping you climb out of the debt hole you may have found yourself in.

Consider the following bad habits. If you relate to any of them, do what you can to turn things around as quickly as possible.

Bad Habit #1: Paying the minimum on your credit card each month

If you can't afford to pay more than the minimum payment on your card, then fine. But if you do have the ability to pay more, then you definitely should. The minimum payments often account for the interest, so you won't actually be eating into the outstanding balance on your credit card. By paying more, you will clear your debt sooner, so commit to this when you have the financial ability to do so.

Bad Habit #2: Refusing to accept help

As we suggested, a high proportion of the country is in debt, so you don't need to feel guilty or ashamed. Your debt issue might not even be your fault, as many people struggle to escape it due to financial scams within the system, according to the DTSS review. So, look for a debt relief solution if you need to, as this is better than burying your head in the sand with fear and shame. Check the previous link, and speak to a debt relief charity to explore other options available to you. 

Bad Habit #3: Keeping up with your neighbors

Not only your neighbors but your friends and work colleagues as well. If you regularly buy into the latest things because other people have them, you are going to drive yourself deeper into debt. This will multiply if you are talking out other loans and opening new credit cards to buy yourself the latest thing. Be it the latest iPhone, tablet, or trending decor for your home (or anything else besides), remember that you don't have to buy into these things if you can't afford them. You also shouldn't bother with them if your only reason for buying is to keep up with other people. 

Bad Habit #4: Buying on impulse

It might be when you're browsing shopping sites online. Or it could be when you're strolling along the high street. If you see something you like and then buy on impulse, you will have wasted the money that could have gone towards paying off your debt. If you're guilty of this, remove your credit card or Paypal details from shopping sites. You won't then have access to any quick payment options online. And when you're leaving your home to go to town, take cash and leave your credit card at home. You will then know how much you realistically have to spend.

Bad habits: We're all guilty of them, but they don't serve us well. So, kick any bad habits you have into touch, and get into good habits to clear your debt sooner, as you will achieve greater amounts of financial freedom if you do. 

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