Click HereEquifax
A cartoon man in red being pulled in the air by a large dollar bill with a blue and yellow background
debt
7 deadly sins that lead to debt

Financial sinners won't have to wait for the afterlife to be punished for their various misdeeds. Plenty of consequences await in the here and now.

Presented with choices daily, human beings can lead chaste and charitable fiscal lives. Or they can succumb to fleeting temptations and fatal traps.

So choose to commit these deadly sins -- or work to bring a little temperance into your spending.

7 deadly debt sins:
2Forget that pride goes before a fall
Pride can get in the way of preparing for worst-case scenarios.
People tend to feel overly optimistic about their ability to pay back debt, stay out of harm's way and maintain perfect vehicular performance indefinitely.
All human beings suffer from overconfidence -- but Americans more than anyone, says Ronald Wilcox, author of "Whatever Happened to Thrift? Why Americans Don't Save and What to Do about It," and a professor of business administration at the University of Virginia.
"Our nation has seen great benefits from the confidence to take risks. Risk-taking built Manhattan. But there is a dark underbelly," he warns. "There are some winners and they do great things, but there are a lot of losers. And one of the risks that people take is spending all their money now and not saving for a rainy day."
Incredible though it may be, cars do sometimes need repairs, cavities need to be filled and surgeries may be required that insurance doesn't completely cover.
"We hear it all the time, but everyone has got to have an emergency fund. It's not if it happens, but when," says Gail Cunningham, senior director of public relations for the National Foundation for Credit Counseling.

 

advertisement

 

 

Show Bankrate's community sharing policy
          Connect with us
advertisement
CARDS WEEKLY NEWSLETTER
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 will debt collectors stop?

Dear Debt Adviser, I have a debt that's expected to be charged off and forgiven by my creditor. But what happens to third-party debt collectors? Can they still pursue me if the debt's inside the statute of limitations?... Read more

advertisement
Partner Center
advertisement

Connect with us