If you’re strangled by debt, unsure of how to tackle debt repair in 2018, chances are, there are a few things you’re doing wrong with your finances. Don’t worry; you’re not alone, as the average American household has over $15,000 in credit card debt at any given time. It’s easy to swipe cards and think about paying them off at a later date – a lot of people do it. However, it’s not a sustainable habit, and it’s certainly not one that is going to safeguard your future.
What Are The Reasons Why You May Be In Debt?
If debt settlement is a reality for 2018, here are a few ways you’ve probably racked up the debt:
1. Restaurants
Eating out can be a fun and tasty experience. However, it’s also extremely expensive. Racking up a $100 bill for two people at dinner is much easier than you may think. Recent studies have found that the average American family spends close to $3,000 per year at restaurants alone. That’s $250 per month that could have been used to fund the entire month’s worth of groceries for your household.
2. Your Ego
Have you ever been at a work function or out with your friends, and after a drink or two, find yourself shouting to the bartender: the next round is on me! While this is certainly a generous thing to do, and something that will win you admirers, it’s not a great move for your bank account. No one really needs that extra shot of alcohol, and every time you pull that stunt, you rack up $100 to $200 more in credit card debt.
3. Deal Deception
Sure, deals on products and services are a great way to save money – but only if it’s something you actually needed. We all see sites like Groupon and Living Social emailing us new deals and discounts to local places every single day. As we view them, we assume the deal isn’t going to last forever, and that it’s something to take advantage of. However, if it was for a product or service you never even needed, you’re still spending unnecessary money, even if it is “within a deal.”
4. Lottery Tickets
Yes, everyone wants to be an instant millionaire. Winning that kind of money could provide you with the ability to shout “I QUIT” at your boss and storm out of the building. However, the smarter option is to save and invest the money that you drop on lotto tickets throughout the year. Even if it’s just an extra few hundred dollars, those dollars could be the start of your investment portfolio.
5. Being Budgetless
No one wants to sit down and make a budget for his or her monthly earnings. It takes all of the fun out of spur-of-the-moment purchases. However, it’s a very important tool for individuals living paycheck to paycheck. If you’re just barely making it on your income, you absolutely need a budget, down to every last penny, if you want to achieve debt consolidation during the year ahead.
If your guilty of any of these offenses, know you’re not alone. Be more aware of your spending habits for your 2018 debt settlement.
