By Ann Sullivan
Accumulating debt is easy. You start out with good credit and can easily lose track of your spending. Add to that, your credit card companies keep raising your credit limit. Before you know it, the payments become more than you can comfortably afford. There are many mistakes people make when trying to get out of debt. Reducing or eliminating debt is not just about not using your credit cards or maxing them out. It’s about changing habits that got you there in the first place. If you’ve found yourself in a situation where you have considerable debt, here are nine mistakes you should avoid when trying to get out of debt.
1) Keep Spending the Same Way
One of the biggest mistakes people make in trying to get out of debt is doing things the same way and expecting different results. The worst mistake is to keep spending money on unnecessary things and not scrutinizing where you can cut down. If you’re serious about getting out of debt, it’s time to put your nose to the grind stone and seriously evaluate what your spending habits are. This involves creating a budget, if you don’t already have one. Start with the most necessary things, such as monthly bills including rent or mortgage, utilities, and everything that recurs each month. Next, review other necessities such as groceries and gas in the car. The third part of your budget should include flexible spending. Here’s where you need to seriously consider what you’re buying that may not be needed. There will be some sacrifices here, so be honest when reviewing this part.