5 scary paths that lead to damaging debt

The scariest monster could be you
The scariest monster could be you © Olivier Le Queinec/

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.


Show Bankrate's community sharing policy
          Connect with us
Credit cards on a table

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.

Debt Adviser

When is debt off credit report?

Dear Debt Adviser, How do I learn the timeline on my debt? I know after six or seven years the debt is removed. I would like to know if there is a way to see if it is gone. -- Mark Dear Mark, Now you see it, now you... Read more

Partner Center

Connect with us