debt

5 scary paths that lead to damaging debt

The scariest monster could be you
The scariest monster could be you © Olivier Le Queinec/Shutterstock.com

Staying alert and aware not only goes for other people in your life but also for yourself. You may be doing things in your daily life that are slowly draining the lifeblood from your finances.

For instance, take bank fees, says Tayne of Tayne Law Group. "You may be charged with fees from your bank without even realizing it." For example, many banks will offer free checking and savings on the condition that a minimum amount of money is maintained in the account and/or regular direct deposits are made. But if you are unaware of the fine print, you could quickly rack up bank fees without knowing it.

"While the fee may be minimal, it can quickly accumulate if it goes unnoticed throughout the year," Tayne says.

Another financially draining scenario is taking out too many credit cards. If you have too many credit cards and don't keep track of your statements, you may miss a payment or find yourself with too much debt, Tayne says.

The solution: Monitor your credit card statements carefully. If you have multiple credit cards with varying due dates, consider contacting each credit card company to make the due dates the same. "This will help minimize the risk of overlooking bills and missing payments, which could eventually impact your credit score," Tayne says.

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