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Making Bad Spending Decisions

One small misstep can send you into bankruptcy, foreclosure, or debtors court.

We often make bad decisions when we spend our money. Sometimes the way we spend seems to be the right thing to do at that time, but we find out later that it wasn't the smartest decision we ever made and we should have kept the money in our pockets. How you spend your money today will have an impact on your finances tomorrow and for many years to come.

On top of that, our bad spending decisions seem to come at the most inopportune times. After we've spent on things we don't need right now, we remember that our car payment is due and our rent needs to be paid and now we don't have the money. Even when we do have extra money, spending it frivolously still hurts.

As the economy struggles to improve, now is the time to buckle down and get serious about improving your spending habits. You should be cautious with every dime you have and make good spending decisions a top priority in your life. To be sure, these are difficult times and many people will find themselves making bad decisions because they are desperate.

When jobs are hard to find, credit becomes even harder to get, debts pile up, and what money you have never seems to be enough. Nothing seems to fall in place with your finances and you find yourself living from paycheck to paycheck with no room to maneuver. This is when you should really try to keep your spending under control.

When the economy goes bad and the flow of money gets tight, many honest, hardworking people get trapped in a financial hole and find themselves making bad decisions on top of already bad situations. Frustration and desperation sets in and they turn to borrowing from Peter to pay Paul, writing bad checks, and hiding from their creditors.

Most people don't like getting behind on their bills and will do almost anything in their power to pay them. But once they get behind, there there is no easy solution as far as getting back on track. If they don't have the money to pay their bills, they will have some tough choices to make until their financial situation improves.

It takes a long time, maybe years, to get back on the right path to sound financial health. One small misstep in their day to day spending habits can send them into bankruptcy, foreclosure, or debtors court.

It's easy for those who are not having financial difficulties to judge those who are, but as you've probably heard, many people, even those who are wealthy, make bad financial decisions and go through hard times.

The best thing to do is to own up to your mistakes and try to understand what you can do to improve your situation. Talk to your creditors and try to make arrangements to pay what you can and try not to make the same mistakes over and over again.

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