4 Habits People with Debt Have in Common
Posted on 11/25/2019
They say birds of a feather flock together. Unfortunately, that rings true when it comes to the things consumers in debt have in common. When you combine all the debt birds in America together, you get $13.8 trillion. A shocking number, but not really when you look into the habits that can drive someone towards debt.
Here are the top four we have encountered:
Not knowing when a bill is due or the amount due is a MAJOR red flag & bad habit that needs to be broken ASAP. Late fees can add up quickly. Most credit companies will forgive one late fee a year. Aside from late fees, the impact missing payments can have on your credit score is extremely damaging.
Non Existent Budget
Without a budget in place, it’s easy to overspend. Having a budget lets you gain control over your finances. It will also give you a clear picture of where & on what you are spending the most. When you have a manageable system in place & get into the habit of following a budget, paying down debt will get easier.
With new payment methods like Apple Pay, Samsung Pay, Venmo, PayPal etc. spending money is faster than ever. Nowadays information is digitally saved & all you need is the scan of a finger to make a purchase. Making spending even easier than ever. You see something, you want it, you buy it. By buying anything you want without considering the cost, payback or if its even a need, you end up falling deeper into debt.
Making Minimum Payments
When it comes to credit cards, retail cards interest rates are a lot higher, averaging at about 26%. Making minimum payments on a card with a high interest rate can take longer to pay off. In the end, you will pay off much more than what you owed to begin with. If you thought you were getting a deal on something by putting in on your credit card, think again. With interest, you’ll end up paying the regular price on a discounted item. Maybe even more.
Debt isn’t about how much money you make, it is about managing the money you do make in a way that works best for your financial situation. Continuously educating our clients on maintaining healthy spending habits, budgeting for their future goals, & remaining debt free is our main priority.
No matter what your credit score may be, there is a solution for everyone. Call to speak with a Certified Debt Consultant today. (866) 611-6838