BANGALORE: When you are in debt, certain habits will only make it harder to pay off your debt for good. Or worse, these things could drive you deeper into debt. If you are not making progress paying off you debt, one (or more) of these things could be the reason why.

Here is a list of things you should “NOT” do when you are in debt:

1.  Keep using your credit cards

If you have credit card debt, there is only one sure way to pay it all off—stop using the cards and make your monthly payments (plus extra if you can) every month.  With no additional work on your part, you will be out of debt at some point in time.  However, if you keep using your credit cards, what typically happens is that you tend to pay off only what you charged the previous month. 

2. Spending money on things you don’t need

There are some people who waste their money on buying things that they like and want and many of them do so without knowing what they are spending their money on and without keeping track of it. If you do this, you will spend a lot of money unnecessarily.

For example, if there is a sale at a store and you just feel like you must buy something just because it’s at a discount, don’t buy it if you absolutely don’t need it. You should only spend money on things you truly need and never for the sake of spending.

3. Not adapting to income changes

If you get laid off at your job or if your salary has been cut, and you keep on spending the same amount of money as before, you might not have enough to cover your expenses and you might have to dig into your savings or get into credit card debt.

To avoid getting into debt or dipping into your savings, you have to be willing to adapt to income changes and get used to not spending as much as before. For example, if you would eat out four times a week before, you might want consider eating out only once or twice a week. Or if you were used to taking a taxi to work every day, you might want to take the bus or the subway since that could save you a lot of money.

    4. Having children when you are not financially prepared

Babies and kids have a lot of needs and wants: you need food, clothes, toys and of course a good education that will help them in the future. In short, bringing up a child into adulthood isn’t cheap. If you’re not financially stable, you may have to go into debt to give them the best things you can.

If you feel that you do not have the money it takes to have a child, you might want to consider waiting until you are more financially stable.

5. Not keeping track of how much you spend

If you want a sure way of getting into debt, just spend money without knowing how much you’re spending and without keeping track of it and soon enough, you will find yourself in debt and without money.

To ensure that you do not waste more money than you can afford, you should draw up a budget and keep track of how much you spend and how much you can afford to spend.