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We live in a material world, where the cost of living is always rising, and it is very easy to over extend yourself with lines of credit, and while we do need to borrow money for certain things, there are other expenses that lead to bad credit and debt. If you are at all concerned that you might be spending more than you earn, here are a few aspects of credit to try and avoid.   If you want to know solutions for a bad credit, check this information on very bad credit loans direct lenders.


  1. Buying an Expensive Car – While you might have your heart set on that prestige car, the heart often rules the head and you could end up with an expensive car that you cannot afford. It isn’t just the initial cost of the vehicle, as you have running costs and repairs, not to mention insurance.


  1. The Credit Card Loop – This is so easy to fall into; you have a couple of cards and spend mor If you want to know solutions for a bad credit, check this information on very bad credit loans direct lenderse than you should, but you manage for a while by borrowing from one card to pay off another, and before long, you have no money left after paying the credit card bills, and have no choice but to keep using the cards until the next pay cheque arrives. Should you be in such a situation, consider debt consolidation for people with bad credit, which enables you to pay off all your debts, leaving you with a single monthly payment that is affordable.

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  1. Living Above your Means – Having a few lines of credit allows you to have a comfortable life, and if you aren’t looking to make any sacrifices, you can quickly reach the point where you are spending far more than you earn.


  1. Foreign Holidays – It is so tempting to just contact a travel agent and spend a week or two on a tropical island, which can all be paid for at a later date, and you only need a couple of unexpected expenses like a car repair or medical bill, and you could find yourself in debt. If you can afford a foreign holiday, then all well and good, but you must resist the temptation if the finances are a bit tight.


  1. Expensive Jewelry – Fine jewelry is certainly not cheap, yet you would be lucky to get 50% of what you paid, should you ever decide to sell. If you have a few thousand dollars sitting around, then why not buy that designer watch, but if you buy a luxury item on credit, this will cost you a lot more than the initial cost of the item.

One must exercise a level of self-discipline when acquiring credit cards, otherwise you can very quickly find yourself paying a high rate of interest. If you would like some help regarding home budgeting, check out several guidelines online.

Image Source: Pixabay


If you are already struggling with several monthly repayments, there are online loan providers who offer debt consolidation loans, and they have helped thousands of Australian people become debt free. It is better to deal with the issue, rather than leaving it, as it will only get worse.

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