5 habits that will get you into debt and how to avoid them

No body is perfect on this earth. And when it comes to spending money and leading a lavish life, even though we cannot afford it, every body says yes. By doing this you will get in to a lot of debt. Those who do not understand their finances or debt are going to be in a lot of trouble very soon. There are some common habits which are responsible for most people’s debt problems which are listed below. If you manage to stay away from these habits then you will not have to face any insult from your creditors. The habits include:

  • High number of Credit Cards

Were you aware of the fact that the number of credit cards in UK far exceeds the number of people there? This directly points to the fact that each person has far too many credit cards. According to official reports there are sixty million people and seventy three million credit cards.

Remember that if you carry several credit cards then the chances of you getting in to uncontrollable debt is very high. Though the credit card companies offer extremely tempting offers, you have to get a hold of your self and also your debt. If you want to have a debt free future then you should begin by paying off your highest APR card.

  • Spending a lot more than what you earn

Steps to eliminate this habit should be taken with immediate effect or you will find that you have lost every thing even before you realise it. According to historical data, this is the fastest method to fall in to the debt pit particularly more for those people who relay on their credit cards till the day before they get their pay check and from the next day.

  • Missing your payments for the credit cards

Always be sure to be able to make your catalogue, store card or credit card payments on time. Failing to make these payments will have a double attack for you. Firstly, you have to pay the late fee on your missed payment and secondly, this will go in to your credit report and reduce your credit score rapidly, making it extremely difficult for them to get any credit in the following years.

  • Losing track of all your finances

Not knowing your balance in your bank account and the amount of debt that you owe to your creditors will only make it much harder to become free from debt. Knowing your cash to debt ratio all the time will make you spend less and free of debt is very less time.

  • Not taking help

Unfortunately, the problems related debt will not become alright without you putting an effort. Therefore, if you are unable to pay your debts for even a month then it is better for you and your family to seek help. There are several debt consolidation firms to go to for a better future.

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