1. Having high interest credit cards and loans.
Consumer debt is bad, this includes everything from credit cards to buying that brand new top of the line plasma television on a high interest loan. Ditching the plastic and paying off the highest interest loans or credit cards first will put you on the fast track to becoming debt free.
2. Living beyond your means.
Are you living a lifestyle that you cannot comfortably afford? Most Americans are relying on things like their credit cards to get by. One does not need to have the latest and greatest of everything, so if you can do without it do so and you will be rewarded with peace of mind.
3. Missing and making minimum payments.
Making minimum payments and carrying a balance on your credit card is only going to get you nailed with outrageous interest fees. Completely missing the payment all together will slap you with late fee and be reported to your file on top of the accumulating interest. Credit cards should only be used as a convenient way to pay with money you do have, this means paying your debt in full every month. This is one of the easiest ways to fall prey to the creditors.
4. Not staying on top of your finances.
Ignorance is no excuse, you must know what your up against in order to fight back. This means regularly checking your credit report, knowing how much you have in the bank and exactly how much debt you have accumulated. All of this is necessary to begin planning to take back your credit.
5. Not admitting when assistance is needed.
People will refuse to admit to themselves when they need help until it becomes a huge problem. The sooner you seek professional assistance when you don't know what to do the better. Interest will only be accumulating during the time it finally take you to realize that you need help.
