According to the Federal Reserve as of June 2010, US consumers are $2.42 trillion in debt. Bankrate.com breaks down the top ten reasons American consumers are suffering from staggering amounts of debt.
Some of the most common financial mistakes can be prevented with simple discipline and behavior changes. Learn from these mistakes and start paying off your debt.
The number one bad habit is misusing balance transfers.
Transferring balances on high-interest cards to lower-rate cards can be an effective technique, but it’s easy to make it a good idea gone wrong. Transfer a balance onto a card with a low introductory rate and you can potentially save money on interest if you refrain from charging on it and focus on paying off the balance before that introductory rate expires. Most people continue to charge on the new card and wind up with more debt once the teaser rate expires. In fact, new purchases may pull an altogether different interest rate. Read the fine print very carefully, and attempt the balance-transfer maneuver only if you can control your spending on the new — and old – card.
Other common consumer mistakes include: failure to budget, not checking your credit report, using retail store credit cards and making late payments. You can read a complete listing of common bad habits and tips on how to avoid the downfalls of debt here.
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Posted by dealingwithdebtblog 
