Brenda Langenberg

Oct 10 2016

Healthy Money Habits: Avoiding Debt (Part 2 of 4)


Learning to avoid credit card debt and saying ‘no’ to yourself/unnecessary wants more often will help to keep you on the road to overall financial health.

  1. Avoid Credit Card Debt

    Credit cards are a great financial resource when used responsibly. They can also be the source of financial distress when used irresponsibly. The most important tip to ensuring your credit card is a resource to you, and not a distress, is to pay off your credit card balance at the end of every billing cycle. A second tip is to avoid using your credit card for a cash advance.

    Cash advances are very expensive because they automatically carry a higher interest rate on the amount borrowed, include transaction fees, and have no grace period for repayment. You may borrow $X amount, but will be paying back much more than the initial amount borrowed. A second tip for responsible credit card use is to not charge items that you cannot afford. Generally, if an item(s) can’t be purchased with cash, that item(s) will be the cause of overspending.

  2. Differentiate Between Needs and Wants

    The second piece to avoid when trying to become financially healthy, is saying ‘yes’ too much. Be sure you are not overspending because you are saying ‘yes’ to unnecessary wants all the time. In this aspect, learn to say ‘no’ more often. Teach yourself what the difference between a need and an unnecessary want is. This will help to keep you on track with your financial goals.

In the next part of the Healthy Money Habit Series I will touch on the importance of Insurance and Retirement accounts. What tips do you have for paying off your credit card from month to month? Share your tips in the comment below.

View the complete 4-Part Healthy Money Habits Series:
• Part 1 – Pay Yourself First
• Part 2 – To Be Avoided
• Part 3 – Insurance and Retirement
• Part 4 – Financial Maintenance
Healthy Money Habits Series Wrap-Up

Brenda Langenberg

About Brenda Langenberg

Brenda Langenberg is Vice President and Branch Manager at Hills Bank’s Mount Vernon and Lisbon locations. She has been at Hills Bank since 1992 helping customers with their banking needs. Brenda can be reached at

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