3 Silly Things People Do That Keep Them in Debt
Most people in this country at least have some debt. Some people have so much that it is overwhelming and becoming such a frustrating situation they feel they can never get out of it. When you become this frustrated, it becomes very hard to think clearly. This makes it even more difficult to make intelligent financial decisions. Therefore, we often dig the hole much deeper when it comes to these matters by making silly mistakes. And, now many places are implementing wireless mobile credit card processing, making it even simpler for you to spend, and maybe spend just a little too much. Here are the top 3 blunders people make that keep them deeply in debt:
1. Spend “just a little” to “feel better” – This is probably one of the reasons you are in debt in the first place, but it’s really easy to fall into this pattern. Life throws some unexpected expenses your way, you feel upset, but instead of focusing on being more frugal and paying off the debt, you let your anger lead you to go out for a cocktail or buy a new shirt, just a little something, to make you feel better. This is just instant (and fleeting) gratification. Don’t fall into this bad habit.
2. Borrowing Money from Family or Friends to Pay Other Debts – This may seem like a good idea, considering a loan from a family member or friend typically comes with no interest. However, it typically comes with a “pay me when you can” that doesn’t REALLY mean “pay me when you can.” And maybe since you have no due date with your friends, you may end up spending cash on things you don’t need, instead of paying them back. Money is one of the number one killers of friendships and familial relationships. Just try your best not to borrow from your loved ones. It rarely ends up going well.
3. Use one credit card to pay off another – Sometimes this can be a good idea via a low-interest balance transfer that also offers little to no balance transfer fees. Without those stipulations, this is just a recipe for disaster. This basically just keeps your debt at the exact same level, and sometimes it can even cause it to get worse if you don’t truly read the fine print and make your balance transfers wisely.