7 Deadly Sins of Debt
April 9, 2009
Due to a number of people sending me emails in order to seek out debt advice, I decided to compile a list of the top 7 cardinal sins which inevitably lead to it. Before reading this list, be aware that there are specialists who work within Debt management and Debt consolidation, such as Debt Free Direct.
1. Relying on your credit cards
Credit cards should be valued for their convenience, but you should not be using them as extra income. If you are putting purchases on credit cards just to make ends meet, then you may be on the verge of serious debt trouble.
2. Underemployment
If you find yourself in a job for which you are over-educated or over-qualified, then you might be tempted to live as if your income is more in line with the job that you really want. This is particularly true if you recently have been unemployed. While you may very well get that higher paying job in the future, it is important to balance out your expenses with your income as it is currently.
3. Poor spending habits / Money management
It is essential to develop a monthly budget, and to stick to it. First, track all of your expenses for one week to determine exactly where your money is going.
4. Not saving
Well now, this should come as no surprise! Saving even a minimal amount each month will allow you to build up an account that can help to protect against any unexpected costs, or against a loss of income, in the future. Remember the saying “pay yourself first”.
5. Education
Some types of debt are considered “good debts”, or those expenses that are investments in the future. Student loans are such debts.
6. Gambling
While this might not seen like as serious or common a cause of debt as the other reasons listed, gambling actually does contribute to a great deal of individuals’ debt problems.
7. Divorce
Yes, I thought I would throw this one out there. After all, few life-changing events have as dramatic an impact on finances as divorce. Just like we all do in the stock market, make sure you do your research on whoever you choose to marry! lol 
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April 9th, 2009 at 7:18 am
The credit card issue really can’t be overstated. I have known so many people that got themselves into debt in college with credit cards and are still paying for it years later. It’s a really big issue for a lot of young people, and one that doesn’t get brought up enough.
April 10th, 2009 at 2:16 pm
The gambling might show up in weird ways, If you find yourself bouncing between starvation wages and 6 figure wages you might have a problem gambling with your career.
April 11th, 2009 at 11:11 am
At first, this list may sound overly simplified . . but the longer I live, the simpler things tend to be. Great way to break it down.