A few missed payments here and there can be a slippery slope that lands you deep in debt. If you’ve developed any of these bad habits, you may be at risk for serious financial issues.
Ignoring your spending
People who track their spending are more likely to budget their money accordingly. If you don’t have a clue what your account balances are and wouldn’t be able to say where your last paycheck went, you probably won't like what you see when you find out.
Paying off debt ...with your other debts
You know you’re really hurting for cash when you find yourself “paying” off a debt like the mortgage on your house with a credit card, another form of debt.
Engaging in this practice will inevitably result in more debt between each account as the interest grows. When you get paid, try to spend the cash you have only on absolute necessities.
Opening new lines of credit
A new credit card wears the façade of a new source of easy income. This biggest lie you may tell yourself while opening a new line of credit is that it’s only temporary. You may think that surely you will only need to use it sparingly until you pay off your last big purchase or that next raise comes along at work.
On the contrary, opening a new line of credit is likely to lead to more years paying off larger sums of debt.
Lacking basic necessities
When you find that you’re not able to afford the basic necessities to life, you’ve probably hit true desperation. And no, not basic necessities like your Netflix subscription. If you can’t afford groceries, living expenses and basic hygiene products, you should consider filing for bankruptcy.
Bankruptcy can absolve your debt to help you climb out of a financial pitfall. To learn more about how it may help your unique situation, consult with an attorney for help.