Many of us work long days in stressful jobs, so it is only natural that you treat yourselves at weekend. But if you are getting a nasty shock every time you open your credit card statements, then you might be shocked as to why you are in debt?
There are many ways that we can get into debt without even realising, see if you are guilty of any of the following debt mistakes which could be one of the reasons why your credit card debt in on the increase:
1: You are a bargain hunter – Have you ever heard anyone say “You’ll get me bankrupt with the amount of money that you save me?”. This saying is true of many bargain hunters who cannot resist an item which is on sale.
Whether this be the High Street sales or buy-one-get-one-free offers at your local supermarket, a bargain is only a bargain if you use it and you are spending within your means. Try taking a list out with you when you go shopping; stick to the list and see how much you could save.
2: You live the celebrity lifestyle, without the pay check – Sadly most of our salaries do not support the celebrity lifestyle, but many of us still splash our cash in places where we shouldn’t, such as on a designer handbag or expensive nights out drinking champagne cocktails.
The danger here is that you will be building up credit card debt as you are constantly living beyond your means. Writing down where you spend your money could help you with your costs and let you look forward to a debt free lifestyle.
3: You don’t shop around for deals – Some people don’t like haggling for deals but it is actually very simple to do online. For example, if you see a brand new shiny laptop that you like, take a note of the price and look for the same item online as chances are there will be at least one online retailer which can offer it at a lower price.
You could also save more by going through a cashback site, where you earn a percentage of the item’s value as cash back, meaning that you are saving even more money without spending any extra.
4: You fritter away your money – It is so easy to get into debt without even realising how you got there. And frittering away your money on small items means that you could find yourself in debt without a clue why. For example, your morning latte, weekly glossy magazine, international phone calls and the new expensive lip gloss; it all adds up to debt.
5: You ignore your debts – Ignoring your debts is going to make your debt problems even worse. You will find that your debt levels never decrease due to the interest and charges which are being added on a monthly basis.
Getting your bills in order is the first step to tackling your debts. You might want to consider switching utilities so that you can save yourself money or switching payments to direct debit so you never have to worry about missing payments in the future.
If your debts are unaffordable then it is time to get debt help and advice. There are different debt solutions available, meaning that we should be able to help you no matter what your level of debt.