1. Ignoring your credit report 

Your credit score plays a major role in determining the interest rates you pay on loans and credit cards. A lower score can mean higher rates, making it harder to pay off debt. Many people don’t realize how much of an impact their credit report has—or that errors or missed payments can drag down their score. 

Fix it: Check your credit report regularly to catch errors and see where you stand. Websites like AnnualCreditReport.com offer free annual reports from the three major credit bureaus. If you spot inaccuracies, dispute them right away. 

2. Falling into lifestyle inflation

It’s easy to let spending creep up when your income increases. After a raise, you might upgrade your car, dine out more often, or take lavish vacations. While it’s natural to want to enjoy the extra money, if you’re not careful, these habits can eat away at your income—leaving little left to pay off debt. 

Fix it: Prioritize your long-term goals over short-term splurges. Commit to saving a portion of every raise or bonus before increasing your spending. Even small adjustments—like dining out less frequently—can make a big difference over time. 

3. Not having a debt management plan

Debt can feel overwhelming if you don’t have a plan to tackle it. Without clear goals or priorities, it’s easy to fall into a pattern of making minimum payments, which barely chip away at the principal. 

Fix it: Create a plan by listing all your debts, including balances and interest rates. Prioritize high-interest debts or consider using the debt snowball method (starting with the smallest balance). Log into your FinFit account to explore the tools and resources available to you today! 

If you have multiple debts, look into debt consolidation loans to combine them into one payment at a lower interest rate.  

4. Waiting until there’s a crisis  

Many people wait until they’re in financial trouble to take action. This reactive approach often leads to higher costs: late fees, penalties, and mounting interest. It keeps you stuck in the debt cycle, constantly scrambling to cover emergencies. 

Fix it: Be proactive. Build an emergency fund, even if you can only save $25 a month to start. Regularly review your financial situation and adjust your budget as needed. Setting aside even a small cushion can help you avoid relying on credit cards when unexpected expenses arise. 

5. Inconsistent money habits  

Managing your finances sporadically—sticking to a budget one month, splurging the next—can prevent you from making progress. Just like you wouldn’t expect to get in shape by hitting the gym twice a year, you can’t expect to pay off debt without consistency. 

Fix it: Develop consistent financial habits. Create a budget you can stick to and review it regularly. Automate savings and debt payments so you stay on track without thinking about it.  

6. Not asking for help

Debt can feel isolating and overwhelming, but trying to handle everything alone can prolong the problem. There are plenty of resources available to help you manage debt—you just need to reach out. 

Fix it: Don’t be afraid to ask for help. Financial advisors, nonprofit credit counseling, and even trusted friends or family can offer valuable advice. Log into your FinFit account to explore free financial counseling.  

Take the first step! Getting out of debt doesn’t have to feel overwhelming. By addressing these common mistakes and making small, manageable changes, you can start to take control of your financial future. Remember—progress happens one step at a time.