Bad Financial Habits That can Lead to Debt

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7 Bad Financial Habits That Can Lead to Debt
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Impulse Buying
Impulse buying can get you into debt. When you
make impulse purchases, you use a credit card as
you may not have extra money for the unplanned
purchase. And, if you dont pay off the credit
card balance, you are bound to get into debt.
Only buy what you need! Remember this whenever
you are about to make impulse purchases.
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Using Credit Cards for the Points
Reward credit cards encourage you to spend more.
Using your credit card just to earn those
tempting reward points can lead you into debt.
Use your reward credit cards sensibly. Going into
debt just for getting credit card points is not
worth it.
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Trying to Compete Against Friends and Neighbors
Competing against friends and neighbors can lead
you to take poor spending decisions and cause
overspending.
When you see your friend or neighbor having an
expensive lifestyle, remind yourself of your
goals and priorities.
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Shopping to Feel Good
Shopping to make yourself feel good is actually
bad for your financial well-being. Spending in
order to feel better can become addictive and
hard to break.
Check your emotions before you buy anything to
avoid emotional shopping. Think whether you
really need it.
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Leading an Expensive Lifestyle
It becomes very tempting to have an expensive
lifestyle when you are earning more. Buying a new
house, car, or expensive vacation can land you
into a financial trouble in case you can't afford
it.
Make sure you only buy things you can afford.
Going into debt just to lead a rich and luxurious
life is not advisable.
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Paying Only the Minimum on Your Credit Cards
Making only the minimum payment each month on
your credit card is bad for your financial life.
You will be accruing more interest and piling up
your debt.
Remember you owe the credit card balance, not
just the minimum payments.
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Not Planning for Debt
If you are not planning how to pay off your debt,
you will find yourself owing several creditors.
This will lead you into debt trap.
Create a plan to pay off your debt. Start with
the minimum balance and keep paying minimum until
you can tackle that balance.
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