Here are nine ways that you can get into debt. It can easily happen to anyone and with the average U.S. household credit card debt at $15,252 there is a fair chance that it’s something that you are familiar with. This article describes the top ways people get themselves into debt. By being aware of the pitfalls hopefully you may be able to avoid all of them and stay debt free.

1. Getting a credit card or 2, or 3 or 10

In 2008, credit card companies were falling over themselves to extend your line of credit. Even now, they entice you with low initial interest rate offers, air miles, cash back, etc. But if you don’t clear your balance then you get into debt. With credit limits increasing as you near them, it becomes easier to get into debt further and much harder to escape.

2. Not saving money

Spending all of your money every month means that you will have no emergency fund if something goes wrong. When these bad things happen then out comes the flexible friend and the more you get into debt. Alternatively, if you want to splash out on something big and you don’t have money set aside, it is easy to fall into the temptation of using credit.

3. Not setting a budget

By not setting a budget you will never know if you have sufficient money each month to make ends meet. By not setting a budget you may well go into the red at the end of each month and have to pay those annoying fees. If teamed with a savings plan, setting a budget can help you out of sticky situations and make sure you have sufficient funds should you wish to treat yourself.

4. Not sticking to a budget

If you set a budget but don’t stick to it then you will end up in debt – or further in debt. In a way this is worse than not setting a budget as you’ve done a lot of the ground work already. Stick to your budget and every month you will be able to pat yourself on the back (and see your money grow).

5. Spending money not yet earned

If you receive a bonus from your employer it is very tempting to spend it before it has landed. This usually means having to borrow. Rather than paying off what you’ve borrowed you will find something else “more important” and your bonus gets spent twice. Don’t count your chickens, wait until you have the money in your hand to avoid this easy pitfall.

6. Getting into debt by studying

Student debts are very large financial commitments that are gathered in the hope that one day you will have a big enough salary to clear them. While studying is recommended, being aware of the debt accumulated has a potential impact on your future options. Not taking your studies seriously can also be a massive waste of money as not only could this affect your chances later on in life but doing this will burden you with painful debt that will take years (if not decades) to clear.

7. Trying to win big

Spending money to make money is the mantra. But if you spend on credit big hoping to make it big then don’t be surprised if you fail big too – and get into debt of course.

8. Not paying attention when juggling credit cards

Juggling credit card debt to get the best rate is an excellent idea if you are looking to pay them off. Be fully aware of when the low interest rate expires so that you can either make sure that the debt is cleared before that date or swap it to another low-interest card. Having access to a longer line of credit can be tempting and having multiple credit cards can take work. So if you don’t take care of them you will get into debt just because it is available to you.

9. If only I had…

I think we’ve all said, “If only I had X, then my life would be complete / life would be easier / I’d be happier etc.” You use credit to get the magic ingredient and it fails to live up to its promise in the long run, so X becomes Y and so on…

Featured photo credit: http://www.lendingmemo.com via flickr.com

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