Living beyond your means is incredibly easy to do, unfortunately. In fact, the average American household income has grown by 26% in the past 12 years, but the cost of living has gone up 29% in that same time period. In order to bypass credit counseling and debt settlement help, it is important to take charge of your debt.

So here are some signs you are living beyond your means, plus some tips on how you can get back on track.

Fear of Missing Out

Are you suffering from FOMO?

Don’t let the fear of missing out ruin your budget. While it doesn’t feel good to feel as if you are missing out on fun and exciting things with your friends, letting this feeling get the best of you can quickly lead to debt.

Simply going out to eat once you have exhausted your restaurant fund for the month, spending too much on rent in order to stay near your friends, or shopping at expensive boutiques to have designer clothes can all add up. In order to save money, it is important to take a hard look at your motives for spending and find cheaper ways to spend time with your loved ones.

Keeping a balance on your credit card
The idea behind this is simple, if you carry a balance on your card every single month then it is easier to spend money you do not have. Credit card debt management can be easily resolved by simply doubling or tripling the minimum payment due to get back on track. Only keep what you can afford on your card and pay cash whenever possible, and soon you will not have anymore credit problems.

Not saving
At the very least, you should be saving at least 5% of your income in an emergency fund. If you are not able to save the very minimum, this could be a sign you are living beyond your means. Plus, if you are not able to save then this means you could be spending on some things that are unnecessary. It is important to pay yourself first; establish a savings account that you can rely on in case of an emergency, and then you can splurge on other items.

There are also new apps which automatically deposit small amounts into your savings account, so look into some of the free resources available online.

If you notice these habits in your daily life, then it may be time to contact a professional about debt settlement help. The professionals at The Debt Management Group are here to help, so call today to get started on some beneficial changes!