There are many reasons why you might find yourself in debt. One of them could be due to bad spending habits. If you don’t want to fall into debt, you need to be aware of these bad spending habits. Who knows, not only can you avoid debt, but you can also save more money by eliminating these bad spending habits from your life.
1. Spending more than you earn
One obvious reason why you fall into debt is that you spend more than you earn. Everyone knows that spending more than you earn will land you in debt, but not everyone can control their spending habits.
Furthermore, after spending all of your monthly income, you can still use savings, borrow from friends and family, or use credit cards. In the long run, this wasteful spending habit will lead you into a difficult debt situation that is hard to solve.
Therefore, advice from experts is that you need to live within your means, think carefully before making each purchase decision. At the same time, reduce your expenses and use the extra money to pay off your debt as soon as possible.
Illustration
2. Spending money you don’t have
There are many ways for you to have money in your hand, such as using credit cards, borrowing money, or getting cash advances. These are all ways to have money that is not really yours. When you use them to shop, you are creating debt for yourself. If you don’t pay off the debt quickly, the interest will accumulate and your debt will increase.
You can overcome this bad spending habit by cutting unnecessary expenses and relying on income to pay for your own consumption needs.
Illustration
3. Using credit cards for daily expenses
You should use cash for daily shopping transactions instead of using credit cards. What makes credit cards attractive to users is that they allow you to pay in advance and pay later. This is also a trap that can lead you into credit card debt if you don’t pay the credit card bill in full each month.
Illustration
4. Borrowing to pay off debt
Many people have the habit of borrowing from one place to compensate for another, using credit cards to pay off their own borrowings. However, this method does not improve your debt situation, make it better, but on the contrary, it makes the situation worse. Instead of thinking of ways to borrow from one place to another, you should reevaluate your spending habits to make the smartest spending decisions.
Illustration
According to Vietnamese Women
20s woman spend billions to build a house for parents before getting married
Dad earns a living as a street vendor to put son through top university
Having 500 million in savings, a 70-year-old mother can’t tell her children
Seven practical techniques for maximizing savings while cooking meals
Learn how to save money and cook efficiently with our helpful guide!
Tips on Being a Savvy Shopper for the Upcoming Lunar New Year Celebrations
The festive season is fast approaching! Get your shopping done for Tet this year, and make sure you don’t blow your budget doing it. Worry not – we’ve got great advice to help you stay on top of your finances during the holidays. Keep reading to learn more!
Strategies for Building Long-Term Financial Security
Are you struggling to accumulate wealth? Common mistakes like failing to save money, excessive shopping, and over-engaging on social media may be to blame.
How to Make Online Shopping Easier
Developing savvy shopping practices can be an effective way to reduce expenses for your household.
7 Strategies to Optimize Spending During Tet Nhâm Dần
If you’re looking to make the most of your money for Lunar New Year, there are some key considerations to bear in mind. In this article, we’ll discuss 7 key tips for frugal spending during the Year of the Pig.
