We cover a lot of topic here. Most of them are of the informative and how-to nature. I wanted to change that up a bit today. Today we are going to discuss the how to screw things up. Not only that, but we are going to give you the best ways to manage your debt incorrectly. Brace yourself for stupidity.

-If you are in debt up to your ears (as many of us are these days), the most illogical thing to do is to continue spending your butt off. But hey, you are already drowning in debit, might as well keep swimming away from the beach right? Spend away my friend.

–This idea that you are already so far behind the 8 Ball that you are more like Indiana Jones with that big rock is the wrong mindset. Yes, you are in debt, but X more dollars do and will matter.

-You have a house. Using that home equity loan is a sure fire way to get out of your deep debt gallows. Using a home equity line of credit to pay off the monster of credit card debt seems like a smart move. Besides, the rate of the mortgage debt is lower than those high interest rate credit cards.

–Over-spenders make the best money managers. Doing this little tactic will make your woes go away…for now. Then those zeroed out credit card balances will lure your smart-budgeted self  right back into spending on them. Now you are venturing deeper into your debt inferno. For those who take this route and then eventually can’t make the newer mortgage payments, foreclosure comes too fast.

-Borrowing from your loving family worked when you were 16. It should still be able to be tapped into right? Sure. Your loved ones, they, well- love you. They’d be happy to help their struggling family member.

–Never a good idea. Let’s face it, if you have rich family members you are close to, you probably wouldn’t be playing hot potato with Peter and Paul. If they want to help, fine. But accept at your own risk. If they say: “OK, but I really need you to get it back to me soon.” Don’t you dare. You don’t have any true obligations or game plans when paying back relatives or family. You will undoubtedly destroy the relationship with your requested loan.

-What debt? There is no way I saw that. Nope there are no impending threats to my financial position on the horizon.  As long as we are hitting the minimum payments and no bill collectors are calling, we are just fine.

–Wrong Sparky. The worst thing you can do is be unconcerned about the debt red flags. Ignoring the problem doesn’t make it fly far away. Out-of-sight-out-of-mind is not a luxury with financial obligations.

Come back to reality. When In reality, whenever you can only afford minimum payments, you constantly use credit card balance transfers to keep up with your debts, and you’re maxed out on one or more credit cards, something isn’t right. This is where you can still be responsible. How you react to your debts will determine if they eventually spiral out of control through life’s ups and downs.

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