This week’s Financial Infographic focuses on what anyone can struggle with: bad spending habits.
There are a lot of people with bad spending habits, and it’s not just those that are broke, seem irresponsible, or can’t find a job. Many people are susceptible–and often unaware–of the bad spending habits laid out in this financial infographic.
As we dive into this, I’ve got to say up front I’m a little tired of infographics that share seemingly the same info about credit card debt. At some point, it lacks a little originality. I think it discounts the fact that some have piled up credit card debt while living off of them during schooling or times unemployed.
Here’s a synopsis of how to fix these bad spending habits:
1. Spending More Money Than You Make
This point seems infantile, but not everyone is aware that they are spending more than they make. Have you taken a good hard look at your income and expenses lately?
2. Paying Off Debt With More Debt
If you ever see an opportunity to take advantage of a 0% APR balance transfer, it’s likely that you’ll have to pay 3-6% of the balance being transferred up front just to do so.
3. Late Payments and High Interest Rates
Don’t get killed paying 17% to Visa, Mastercard or Discover!
4. My thought: Use Credit Cards Like They Are Cash
If you don’t have the real hard cash in your bank account, then don’t spend it on a card.
5. Purchasing Items You Don’t Need
This will take admitting if we’re impulsive buyers, and deciding to be more cerebral about our purchases.
Take a look at the infographic below and determine what to do if you happen to have any of these bad spending habits.
[Infographic courtesy of http://www.creditloan.com/]
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