If you’re experiencing financial issues, you may be thinking about altering your behavior. In some cases, a person’s spending habits have a direct impact on their financial stability, sometimes leading to insolvency. The Balance offers examples of poor spending habits, as well as tips on how to avoid them.

Relying on credit

Do you use credit for everyday purchases like food and fuel? If so it’s time to stop right now. Unless you pay off your credit card in full each month, you’re actually increasing debt by using credit for common purchases. Instead, use cash when at all possible. Withdraw as much cash as you need for the day and only spend that amount. This is a great way to keep yourself on budget.

Settling debt with credit cards

In the same token, never use credit cards to eliminate other types of debt. This is a matter of redistributing debt and at the end of the day, you might find that your bottom line is in worse shape than when you started. The only time this can be helpful is when transferring the debt to a card with a lower credit limit. However, make sure this new rate will remain for the duration and that transfer fees aren’t so expensive they’re merely adding on to debt.

Exceeding your income amount

When you use credit cards or borrow money from loved ones to get by, you’re exceeding your income amount. This is actually creating debt, since you’ll need to replenish the money you spent, on top of dealing with new obligations. The only way to handle this is to reduce your spending across the board. If you have more debt than you can handle, it might be time to consider bankruptcy.