Accruing bad credit, feeling buried under debt, and having to declare bankruptcy are fates we all hope to avoid. Unfortunately, it’s not uncommon—according to the United States Courts, approximately 12.8 million consumer bankruptcy petitions were filed in the U.S. federal courts between 2005 and 2017. Problematic financial issues often build up over time as a result of uninformed choices. Here are a few common habits that should never be left unchecked.

Common Habits That Can Result in Financial Trouble

1. Paying Your Bills Late

Bills should always be paid on time, regardless of what they’re for. From utility, mortgage, and car payments to student loans and credit cards, any kind of late or missed payment can negatively affect your credit score as you accrue late fees. And the lower you let your credit score sink, the higher the likelihood you’ll have to declare bankruptcy. 

2. Making Only the Minimum Payments

It may be tempting to only pay the minimum amount due on your credit card, but this can have snowballing consequences on your finances, particularly if you do it repeatedly. The credit card company charges you a high amount of interest when you don’t pay back what you borrowed, and these costs can pile up in no time. Paying what you owe in full every month will prevent this and reduce your chances of having to file for bankruptcy.

3. Ignoring Your Mail

Far too often people start to ignore their bills when they begin to receive collection notices and other letters of warning about their debt. While it may reduce anxiety temporarily, not opening your mail leaves you uninformed about the state of these financial affairs. In addition to being in the dark about exactly how much you owe, you also risk missing important information about things like lawsuits, repossessions, or wage garnishments. To avoid learning about these things once it’s too late to do anything about them, face the temporary discomfort and open your bills when you receive them.

To learn more about how to regain your financial freedom, contact the experts at Arnold Law Offices in Pell City, AL. In addition to bankruptcy law, the firm specializes in criminal defense, probate, personal injury cases, and family law. Visit their website for more information on your debt relief options and call (205) 338- 6565 to set up a consultation today.