Branching Out: One debt leads to another and things snowball out on control from there. Follow these 7 Deadly Debt Sins and learn how to avoid making serious debt mistakes and mishaps.
7 Deadly Debt Sins
Debt Sin #1: Not Paying Bills in Order
Yes, there's an order of importance when it comes to paying Bills. Pay the IRS before anything else. Unlike your creditors, the IRS can seize funds from your bank account or paycheck.
Debt Sin #2: Not Building an Emergency Fund
If you're living paycheck to paycheck one car accident can leave you in debt. Get in the habit of keeping an emergency fund.
Debt Sin #3: Credit Cards, One Way Ticket to Debt Hell
If you're a compulsive spender, resist the allure of new credit cards. If you succumb to the evil, don't use the card unless you have the cash to pay the bill with.
Debt Sin #4: Minimum Payments
Don't make the minimum payments on any debt. Interest rates accumulate, especially if you owe the IRS! Pay as much as possible and wipe out debt fast.
Debt Sin #5: Not Budgeting
Keep track of every penny your spend, save all receipts, and pay for everything in cash. Is all of this inconvenient? Of course it is! But it will discourage you from spending money frivolously. (And subsequently not applying that money to your debts!)
Debt Sin #6: Late Payments
Creditors have smaller set fees. The IRS's fees, interest, and penalties will devastate your financial situation. Don't pay more by paying late! Make a habit of paying all bills on time.
Debt Sin #7: Procrastination
I've Levied the Bank Accounts of Doctors, Dentists, Lawyers, and Accountants. Plenty of Rational and Intelligent people think Debt will simply vanish if they ignore it. It won't. Get your head out the sand and pay your bills!
Want More? I've been toying with the idea of writing about general Debt Help and Financial Management. If you want to read more about these kinds of subjects, leave a comment or send me an e-mail to let me know.