Do you ever wish you had a time machine through which you could go back to the past and rectify your money mistakes, especially those that led to costly consequences? While there are lots of financial habits that can push you towards high interest debt, yet poor management of your credit cards is the biggest blunder that will inevitably lead to accumulation of high interest debt. You might feel that credit cards are necessary evils but when you misuse them, they soon become nothing but debt generators. Nevertheless, if you wish to avoid the pitfalls of soaring credit card debt, you have to avoid committing some of the most common financial blunders. Here are some blunders which you should avoid committing.

1. Putting bills on autopilot: Experts recommend you to put your savings on autopilot but putting your bill payments on autopilot is a complete ‘No’. Yes, it is true that you will never forget to make payments when it is set on Autopilot but if you make the mistake of not keeping enough money in your bank account, you’ll soon be faced with overdraft penalties and fees for returned payments. Therefore, it is always better to make payments on your own so that you can avoid falling prey to overdraft charges.
2. Not having an emergency fund: From a job loss to car repairs, you can always face surprise expenses. You should always have ready money to cover such expenses as an emergency fund offers a crucial match when things usually go wrong. One should have 3 months of living expenses ready if you’re a 2-income family and if you’re a 1-income family, you should have 6 months of living expenses ready. If you think you can’t swing that much, you can even have a few hundred dollars in savings to give a cushion to pay for groceries and repairs.
3. Not being able to follow a budget: If you don’t follow a budget, you will find it tougher to let go of financial disasters. It is through a budget that you can prevent debt and build savings and emergency fund. A budget usually offers you a roadmap following which you can reach your financial goals. If you wish to build a successful budget, you have to track your expenses and understand how much money is coming in and how much is going out. Stick to your plan throughout the month.
4. Spending more than what you make in a month: Living beyond your means is a big mistake which most people commit when they are irresponsible about their finances. If you too have been spending more than what you make in a month, you should immediately stop doing so. Try to stay within your budget and spend within your means.

Hence, if you’re someone who is using multiple credit cards, you should take into account the above mentioned blunders. Avoid them as much as possible and stay on top of your finances.