Monday, December 26, 2011

How to Get In Debt

Most Americans have had or currently have at least one bad spending habit. Bad spending habits are just that habits and habit can be broken. It takes 23 days to develop a habit. Habits can be good or bad. Habits that are bad should be broken.

You should always try to become a better at everything you do and this includes breaking bad financial habits and replacing them with good ones. Stop doing at least one of these things to help you get out of debt and say no to debt. Then gradually make another step a habit and keep repeating. The following is a list of some things that can lead to being in debt.

1. No Budget
2. No Health Insurance
3. No Savings or Emergency Fund
4. Stop overextending yourself at Christmas
5. Stop Living Above Your Means
6. Don’t use credit cards for everyday purchases
7. Don’t use credit instead pay with cash
8. Stop Impulse Shopping
9. Avoid Cash Advances/Pay Day Loans
10. “Robbing Peter to Pay Paul" – using money for one bill to pay another bill and still having one bill unpaid
11. Balance Transfers - using credit cards to pay off other debt
12. No retirement account
13. Borrowing from your 401K
14. Co-signing for a loan
15. Having a joint account with someone other than a spouse
16. Deferring student loans or filing forbearance
17. Getting student loans for more than the cost of your college tuition
18. Using check cashing businesses or a liquor store to cash paychecks
19. Doing business with "bad credit no problem" companies
20. Not contacting companies regarding delinquent accounts
21. Repeating the same financial mistakes over and over

Avoiding these bad spending habits can help you say no to debt and say yes to savings and being debt free. Say yes to having a better financial life. Money can generate wealth or generate debt, you make the choice.

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