10 Bad Habits That Lead to Debt Disaster

[David A. Szwak]

10 bad habits that lead to debt disaster
By Leslie Hunt • Bankrate.com


Sometimes the only way to stop a snowballing problem is to go back to the top of the hill and find out what started it.

If you're up to your eyeballs in credit card debt, take a step back and recount your money missteps. Knowing your weaknesses could help prevent you from falling back into the bad credit pit and show you a way out.

According to Gail Cunningham, vice president of business relations at Consumer Credit Counseling Service of Greater Dallas, a nonprofit financial management service, consumers mired in debt make common financial blunders, most of which they can prevent with discipline and behavior changes.


10 bad habits to break

1. Misusing balance transfers.
2. Not checking credit reports -- you can't change them anyway.
3. Failing to alert creditors about a financial hardship.
4. Thinking of "budget" as a dirty word.
5. Using retail store credit cards to make use of discounts.
6. Procrastinating on creating an emergency fund.
7. Paying bills in no particular order.
8. Charging purchases instead of paying in cash or with a debit card.
9. Making credit payments late.
10. Making the minimum payment only.