After working in banking and financial counseling for many years, I've noticed some recurring themes about debt. When we are looking at our finances it is always easy to justify and rationalize our habits and actions, but sometimes it is to our financial disadvantage to buy into these myths. See if you have found yourself saying or thinking any of the following:
"If I'm keeping up with the minimum payment or more, I'm doing OK." If you charge something on a credit card and cannot pay it off immediately or in the near future, you really can't afford it. In our minds, credit cards often become a source of income rather than a debt we are taking on. Any time you charge or take on any debt, it is important to know exactly how you will pay that off. Having ongoing balances and paying the minimum or a little more is a warning that your finances may be in trouble. And if you make payments and then continue to use credit cards to cover expenses, you are digging yourself into more serious financial problems.
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