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Saturday, August 31, 2013

Financial Debt Habits You May Not Notice

It is easy these days to get in to debt. You may find that you even get in to habits with your spending that are taking you in to debt without you even realizing it. You would notice if you were applying for a loan and credit, but there are other things that you can do that are less noticeable.

Credit Cards

Credit cards are something that many people take for granted and use a lot without thinking. They do make paying for things very simple and quick. There is no need to worry about whether you have the cash with you that you need, when you can just use a credit card. Some even offer cash back on certain purchases that can make them even more enticing. If you have a direct debit set up to pay back the full balance each month, then you can benefit from the card. However, it is worth considering the annual fee and whether you think it is worth it. If only the minimum amount is paid back on the card each month, then the cost can be really high and you will find the debt piling up without you easily realizing.

Financial Debt Habits You May Not Notice

Store Cards

A store card works very much like a credit card except that it is associated with a particular store. It can be very easy to spend a lot of money using a card like this and then not think about how you are going to pay it back afterwards. It can be very easy just to set up a direct debit to pay off the minimum amount and not notice how much debt is actually building up.


If you have an overdraft facility, then it can be easy to use it without even realizing. Weather it is a credit card or a personal loan that you are behind on in payments. If you draw money out of the account and have other payments going out then the money can just disappear. Unless you keep checking the balance on the account, you may not notice that you are going overdrawn. Once you do that you will have interest to pay and until you have some money going back in to the account, that interest will mount up. There may even be fees to pay on top.

Borrowing from Friends

It may be easy to borrow from friends without really noticing and then forget to pay it back. If you go out and run out of money or forget your purse, then they may pay for some things for you. They might buy you a drink or some food or give you some cash. It can be easy to forget to pay them back and this might cause problems between you in the future if they feel that you owe money, you forget and deny it or they are too polite to ask. So be careful when you are borrowing money like this.

Borrowing from Family

Some people easily get in to the habit of borrowing money form their family. When they run short of money, they ask for some from their parents. They might do this regularly and not add up how much they owe. They may also get help on a monthly basis with paying particular bills for their family. If they have siblings who are not getting that help, they may feel jealous and it could cause rifts in the family.

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