5. Paying Minimum on Debt

We all tend to find short-cuts with our debt payments, be it for credit cards or loans. This tends to happen more with plastic money. Most credit card users make it a habit to pay only the minimum requirement on their cards. This way they are able to keep bad credit away but the debt amount increases enormously in the long run. If you pay only the minimum requirement on your cards even if you have more money to pay it off, you are just increasing the debt burden on your shoulders. Try and pay off your debts as soon as possible so that you get debt-free sooner.