6 Reasons You Are Still in Debt

Are you still in debt and wondering why? Chances are, you have one of these six habits or mindsets, preventing you from getting out of debt. Examine these six items, see if they apply to you, and see how you can fix them.

1.

You are not budgeting

Sit down and create a household budget. The easiest way to save money is to assign money to all of your needs. Once you begin saving money, you can pay down debt.

Having a budget also means that you do not end up spending more than you can pay off each month on your credit cards.

You are making minimum payments

When you make the budget, you can also pick a bill to stop making minimum payments to. Any amount you pay over the minimum will chip down that debt.

2.

If you’re nervous about overpaying because you are afraid that you will not have enough money, start small. Pay $5 over on the first month, $10 over the next month, and $20 over the next month, doubling each time until you reach an overpayment amount that sees you chipping down the balance.

You are relying on credit for big projects or emergencies and not your savings

Stop doing that. Budget and set aside money to cover emergencies and major projects or purchases that you know will have to make.

3.

You see credit as income

Credit is not income and it is not extra money that you can spend. Close your credit cards if you think it is. You do more damage to your credit by building up high balances than you do by closing an account.

4.

Keep only 1 or 2 credit cards open. Use them for the expenses that you will pay off every month in full, things you pay for out of pocket anyway.

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