More and more people are dealing with spiralling debt.   Most of the time debt mounts up because household expenditure is greater than income.   Of course, sometimes, debt mounts up due to sickness, accident and loss of job, but we for this article, we will concentrate on spiralling debt due to overspending. 

Paying Only the Minimum Payment 

Overspending is caused by loans and dependence on credit cards.   Credit and store cards are a huge contributor to spiraling debt.   One common mistake that people make that can lead to credit problems is paying only the minimum payment on their credit cards. If you are only paying the minimum amount that is due each month, you are probably only paying the interest and never actually paying on what you have borrowed. If you continue to do this, you will end up with credit card debt that is out of control; 

Not Keeping Track of What You Spend 

Not keeping careful track of the money you spend each month is another common mistake that can lead to credit problems.   It is important that you keep track of what you spend from your bank account and what you spend on your credit cards each month, as well. If you do not keep track of what you are spending, you are probably spending far more than you think you are and this can lead to debt that is too much for you to handle. 

Failing to Save 

Failing to take the initiative to save for the future is a sure fire way to credit problems.  This is because you have not saved for emergencies, which always seem to pop up at the worst times. 

Just saving fifty dollars a week can help people get through problems without raising more debt.   Even if your finances are in bad shape, most people you can save some money each week, or do extra work (even a few hours each week) to earn more income. 

If you can avoid the common mistakes that many other people have made, you can avoid having to deal with bankruptcy. It is better that you take measures to prevent these mistakes than it is to have to change your financial habits. Start taking control of your finances before they take control of you and avoid the common mistakes that lead to bankruptcy. 

Impulse buying 

One of the most common mistakes is buying impulsively.  If you impulsively spend money on things that you do not need, it is easy to accrue a great amount of debt in a short time. 

If you do decide to shop, only take the cash that you can spend instead of taking your credit card, which can lead you to purchasing more than you planned.