Possible Habits That Could Lead to Arizona Bankruptcy
Debt is not uncommon by any means in America. The average American has more than $10,000 in credit card debt. And credit card debt is one of the leading causes of bankruptcy filings. So how did this happen? Below are the habits most credit counselors site as the leading causes of debt, and therefore the habits each of us should avoid.
(1) Impulsive purchasing. It is easy to buy without thinking about a purchase. In fact, insiders say that our shopping experience is designed to trigger impulsive purchasing. But buying something we don’t need, when we haven’t planned for it, is the quickest way to get over our heads in debt.
(2) Spending to live like your friends, or neighbors. When we get competitive about lifestyle, we end up losing our lifestyle in the long run to high debt payments and harassing phone calls form creditors. Credit counselors suggest buying based on needs, not on desires.
(3) Spending to make yourself happy. Obviously, this can be a downward spiral. We spend because we are unhappy, and we are unhappy because we spend. But thinking more carefully before making purchases can prevent this spiral.
(4) Transferring one balance to another. Those who routinely transfer their high-interest credit balance to a low-interest balance are avoiding the real issue – that they cannot make their payments and keep a balance on their cards. This is a sign of a larger problem.
Recognizing and admitting bad habits is the only way to avoid repeating them. Credit counselors suggest that all of us look at how we spend, and why we spend. This can help us avoid getting into trouble with debt.