How Do I Avoid Getting Into Debt?

As you use your credit cards, keep these tips in mind to avoid getting yourself in over your head.

  • Have an Emergency Fund.
  • Charge Only What You Can Afford.
  • Avoid Unnecessary Balance Transfers.
  • Don’t Miss Credit Card Payments.
  • Pay Your Balance in Full Each Month.
  • Know the Signs of Credit Card Debt.
  • Avoid Cash Advances.

Why do I keep getting into debt?

What’s the No. 1 reason people go into debt? There are several reasons we accumulate debt, like paying for unforeseen emergencies or unemployment. But most often, debt is a result of bad spending habits, because unless you’re spending cash, it’s costing you money to spend money.

What risks do you undertake by being in debt?

Reasons Debt Is Bad for You

  1. Encourages You to Spend More Than You Can Afford.
  2. Costs Money.
  3. Borrows From Your Future Income.
  4. High Interest Rate Debt Causes You to Pay More Than the Item Cost.
  5. Keeps You From Accomplishing Your Financial Goals.
  6. Debt Can Keep You From Owning a Home.
  7. It Can Lead to Stress and Serious Medical Problems.

How debt can ruin your life?

Bad Debt Can Cause Stress

Bad debt can lead to stress by limiting your ability to enjoy life. Without a system to manage your loans and pay off credit card debt your stress can increase and take years off your life. Not to mention the constant stress debt collectors can place on you to pay off your debts.