Today, where we have so much to spend, attaining financial stability is something near to impossible. Many times, people face financial circumstances which are beyond their control to manage. During such a scenario, borrowing seems to be the only viable option. Well, there is nothing wrong in borrowing, but not able to pay the debts on time creates a problem that affects the credit score of the borrower and can also make a person bankrupt.
Poor money decisions and indulging in bad financial activities are some of the main reasons that can make a person go bankrupt. Here in this blog, we have discussed those activities and decisions in a brief manner. So, let us see them one by one.
Activities that can damage your financial stability
Continuous late payment of bills and rents:
If you hardly even know when was the last time that you paid your bills and rents on time, then this is the red signal that you have not been handling your finance in a better way. Remember this can have an adverse effect on your credit score, which is one of the mandatory things that most banks and other financial institutes go through before lending a loan.
So, the first positive step that you need to take is to find a way to pay all the bills on time. Analyze how much you spend in a month and cut all the expenses that are not mandatory as for now, timely repayment should be your first priority.
If there are multiple bills on debt and you don’t have enough saving in your pocket to clear them all, then you can go for loans for bad credit with no guarantor and no fees from a direct lender. You can use the fund to get rid of all your accumulating bills and debts once for all and from next time start paying on time.
A credit card has become your first pick of the wallet:
Having a credit card is a bane and boon as well. If you have been using your credit card very often and using it to pay for even small expenses, then very soon you will find yourself exhausting your card limit. Apart from that, you won’t have even the clue when you will end yourself under the burden of too many debts.
Having one or two credit card is okay but keeping more than that can make it difficult to handle even for an ideal financially responsible user. Therefore, try to keep the number of credit card minimum and avoid exhausting the card limit as it can have some serious negative outcomes.
Budget is only written on the diary not followed:
Every month you take an initiative to save money and reduce the expenses like the majority of the people, but your dream is still a dream. The reason- you created the budget but you forgot to implement it in your daily life.
So, if you really want to keep yourself financially balanced and safe from any unpleasant event, then try to follow the budget next time that you create at the end of every month when your wallet is drained completely and you have to wait for the next payday. Make a list of all your expenses and see how much you are able to save.
If you are not able to find a single scope of saving, then you have been spending equally or more than you earn. So, cut all the unnecessary expenses and figure out ways to save more. If past debts are obstructing you from saving, then you can very bad credit loans with no guarantor from a direct lender.
Shopping like it’s the end of the world:
Another financial activity that can drown you on debts is when you have a bad habit of over shopping. If you are one of those who run to the malls after seeing the “Discount” word, then you need start working on this habit of yours or else you could find yourself under the burden of numerous debts in no time.
People with this habit would even exhaust their credit card limit in order to make sure that their bag is full of stuff that they saw in the mall. Try to control your urge of shopping and look for ways that can act as compensation for this habit.
You can watch your favorite TV series or hang out with your friends and families. The main crux here is that avoid being alone during times when you get the urge to shop.
Wrapping up, these were some of the major activities or habits you can say that can damage your financial stability and can make you even bankrupt if continued for a long period of time.
Description: People often indulge themselves in financial activities that can not only damage their financial stability