According to the National Endowment for Financial Education Americans are saving less than they were 2009 are have recently started spending more. According to the Federal Reserve of Boston, the average unpaid credit card balance was $3,389. Approximately 56% of consumers carried an unpaid balance in the past 12 months in 2010. Many Americans have gone into debt and have not been able to save money because of financial crises such as unemployment, salary reduction of sickness. However, others have gone into debt simply because they do not know how to manage their money.
Money habits are usually inherited from parents or family members. If you were not taught how to manage your money while growing up or did not see good example of money managing, chances are you will have bad credit at least once in your Iifetime. Here are some ways to get in debt which increases your chances experiencing a financial crisis and having bad credit.
1. Commit a Crime
2. Spend more than you have
3. Use credit cards for everyday purchases
4. Save less than 20% of your total monthly income
5. Have little or no retirement savings
6. Paying more than 30% of your total monthly income towards debt excluding mortgage or rent
7. Making poor financial decisions
8. Not getting professional financial advice
9. Succumbing to peer pressure or impulse shopping
10. Making excuses for bad behavior or spending habits
11. Blaming others for your bad habits
12. Leasing a car
13. Upgrading a large purchase (car, home, etc.)
14. Having excess (50 pairs of shoes, multiple purse in the same color, clothing or purses that cost more than $50 each)
15. Co-signing for a loan
16. Loaning money to friends and family often
17. Gambling
18. Buying rent-to-own furniture
19. Paying bills late
20. Throwing away receipts and not balancing your checkbook
21. Not verifying your monthly financial statements
22. Repeating the same financial mistakes
23. Buy things you don’t need
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