10 daily bad habits that keep you in debt- MSN Money

It’s hard to get out of debt. Sometimes it’s easy to feel that no matter how hard you try, you’ll never be able to pay off all your debt and expenses. While you might have reassessed your finances and figured out how to begin paying down your debt, it’s important to understand how to minimize debt in all areas of your life. For instance, you might not even realize that you have a variety of daily habits that are keeping you buried in debt despite your best intentions. The following are a few of the more common ones.

1. Spending more than you have
It’s easy to spend more money than you have whether it’s by writing a check, swiping a card, or willfully ignoring the decreasing amount of money in your bank account. Just because you have money in your bank account, it doesn’t mean you have to spend it as it many times has already been allocated for other recurring expenses. Fooling yourself into believing that if there is money in your bank account at the moment that it’s OK to spend it is an action that will continue to keep you in debt.

2. Impulse purchases
Impulse purchases are one of the worst habits keeping you in debt. You might really want to stop and get that pastry or that new tech gadget or piece of clothing, but actually buying those items on a whim is contributing to your debt. If you tend to make impulse purchases on a daily basis, you should take steps to seriously curb this habit so that you don’t put yourself into even more debt.

3. Buying things you already own
Buying things you already own is also contributing to your debt problem. Do you need to buy lunch or dinner at a restaurant or takeout place when you have food in your house or apartment? Do you need to buy coffee when you can make it at home? Do you need to stop and pick up more clothing when you have a closet full of clothes with the tags still on? Stop buying things you already own and focus on using what you have. If you find that you are purchasing things without realizing that you already have them, it might be time to declutter your house.

4. Buying things you don’t need
Buying things you don’t need is another problem for anyone already in debt. As with buying things you already own, the problem of buying things you don’t need just contributes to wasting money you should be saving. When you make a new purchase each day, reassess whether or not you really need that item. Instead of buying it without a second thought, take a moment to determine whether or not you’re wasting money on something you don’t actually need.

5. Using credit when you have cash
Sometimes the problem with spending too much money is that it’s easy to swipe a card and figure out how much was spent at a later date. When you carry cash, you’re limited to the amount of money you can spend on one purchase. While it’s great to have a credit card for emergency purchases, using one for everyday items could be the reason why you’re racking up the bills. Try only using cash for daily purchases so you can limit how much you buy and reassess what you’re buying.

courtesy: smart spending

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