5 Easiest Way to Get Yourself Into Debt Fast
By: Roy Chan | Posted: 28th September 2006
Many people are deep in debt because they keenly follow one or more of the following traits. If you are currently debt free, congratulations. However, if you are amongst 90% individuals who constantly struggle with minimum payments, you may find some help in this article.
The first way to debt runs in our vein.
#1 Way to Debt - Impulse Purchase
By not aware of your purchase limits, you may purchase more than what they need. "Nice to have" items are creeping into the baskets before checkout counters. For instance, you might want some cooking oil before entering the store, but ending up 2 or 3 loads of things you had not intended. Typically, those are the items you have to get rid of.
#2 Way to Debt - Bad Habits
Do you smoke or drink? Do you realize how much you've been spending on these items? It kills your financial life. Just imagine what you could do with the money saved for not smoking it or the "dirty water" throwing up in the toilet?
What would you feel, if you give the money to your favorite charity or to your parents? That does not sound like you? Okay, what about buying a new laptop for your own self?
#3 Way to Debt - Risk Numbness
Most of the times, people are not risk-alert. Accidents do happen. We should always be prepared towards unforeseeable events. Be cautious with your health, your living environment, or anything that might prose danger to you personal and/ or financially. One of the ways to mitigate the risk is through insurance. It happens to anybody, including myself.
#4 Way to Debt - Your Weakness Link
Everyone has one or more soft spots when it comes to "throwing money away". For instance, I would easily pull out my credit cards on information products. It maybe ebooks, software products or whatever claims to improve my knowledge. What a waste because most of the time, I don't have the time to do them all.
What about you? What are the magic words which pull your credit cards out of your pocket? Think about the things you have instead of another item on the shelf. It will surely help you to prevent overpurchase.
#5 way to debt - Personal Guarantee
This one is mostly overlooked but crucial. I save it to the last as I dearly want you to memorize it this rule of thumb. Never do a personal guarantee unless you really want to get into debt fast with no return. Here is the deal: can you always control your life all the time? If the answer is no, why should you guarantee the financial life of some other person, even he or she is your best friend, whom you might have known for decades.
It's a straight "No" when it comes to personal guarantee. Never get involved with personal guarantee' with any sort.
The past does not equal to the future and you should not put a pledge on it. No one can guarantee the future, neither should you. Even if that person maintains a excellent credit throughout his or her life. If you want to offer your best help, set an amount that you are willing to give to your friend/ family member with no intention of having that person to return the money. Being rude in the first place is not cruel at all, if you are looking from the long term perspective.
About The Author:
Learn more money management tips and get yourself out of debt today by visiting this website: http://www.wealthyhub.com.
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Enjoy your debt free living today!
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Tags: parents, prose, credit cards, information products, charity, software products, insurance, bad habits, laptop, baskets, toilet, accidents, magic words, minimum payments, cooking oil, impulse purchase, numbness, dirty water