Being overwhelmed by debt can be extremely damaging for families. The tension and stress associated with debt and being in collections can lead to long term hurt and anguish. That’s why it’s so important that Georgia families know how to identify bad financial habits. Bad financial habits don’t just hurt a family’s finances, they hurt Georgia families, too.
Does Your Family Have Bad Financial Habits?
When it comes right down to it, everyone has habits or indulgences that could fall into the category of a “bad” financial habit. For some it’s a daily latte first thing in the morning. For others it’s a new pair of shoes every month or week, etc. It seems harmless, but it’s not harmless when the spending is unplanned and its effect on the bottom line isn’t taken into consideration. Individuals and families experiencing chronic debt often exhibit similar behaviors or “habits.”
Bad Financial Habits Hurting Georgia Families:
- Impulse Buying
- Using Credit “for the Points”
- Competitive Spending
- Shopping as Therapy
- Paying for Convenience
- Ignoring Debt
- Buying a Better Lifestyle on Credit
Debt is a huge problem that holds Georgia families back from success and happiness. Identifying bad financial habits and making the appropriate adjustments can help you get back where you need to be to operate in the black. The New York Federal Reserve Quarterly Report on Household Debt and Credit indicated that Americans held $14.64 trillion in household debt in the 1st quarter of 2021. In contrast, that same report showed that overall credit card debt in the nation dropped about $157 billion since the end of 2019, but according to Experian credit bureau, the average household still had $5,315 in credit card debt in 2020.
Certain Habits Increase the Chances of Debt
People prone to debt typically have one or more consistent habits from the list above that generally lead toward financial struggle. Consider your own day to day activity, expenditures, and money management to identify any of the above habits and patterns. Doing so will help you reassess the way you think about debt and approach money management.
Do You Need a Financial Makeover?
If you need a financial makeover, start by reassessing your financial habits. Habits are formed over the course of years; years spent doing the same thing repeatedly. Bad financial habits can obliterate healthy attempts to stay debt free. Don’t adopt a negative mindset that getting debt free or staying debt free is impossible. Break negative spending patterns, adopt new healthy financial habits, and do what you need to do to get out of debt and stay there.
If you have questions about how to get a fresh financial start by filing bankruptcy or if you’d like to know about the bankruptcy process in Georgia, we can help. Get in touch with Kenneth C. Rannick P.C., Tennessee, and Georgia bankruptcy attorney as soon as possible.