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Not everyone in debt is in a situation they deserve. True, some people spend more than they can afford and end up running credit card after credit card. And before they know, they’re neck- deep in debt.  For others, misfortune may have struck them by way of job loss or even illness. If you’re in a bad credit situation, here’s how you can prevent things from going down the drain:

Check your credit report

You are entitled to order a free credit report once a year from the three major credit reporting agencies, including Equifax, Experian, and the TransUnion. Check the report to look for mistakes. Bills that you have paid in the past could be misreported. It could also be something as simple as an error while entering personal details. Notify the credit reporting agency of any discrepancies immediately.

Control impulse buying

People who rake up huge credit card bills are usually the ones who constantly buy things on an impulse, only to later justify their unplanned purchasing decisions. Restrict your shopping experiences to buying only things that are necessary. Remind yourself constantly that you will only buy things that you need.

Shopping for reward points

Credit card companies tempt us with reward points because they encourage us to shop more. In fact, a study by the American Economic Association found that using reward-based credit cards with 1% return increased our spending by $68!

Don’t indulge in retail therapy

The concept of retail therapy is often made popular by advertisements and movies where shopping is shown to heal many a broken heart. So what if you’re unhappy! Some people are far unhappier than you – live with it and move on!

It could take only a few unpaid bills to turn your situation from bad to worse. If left uncontrolled your spending could have serious consequences, and you may even have to sell your house fast! So take control of the situation before things go bad.