Couple looking at dream homeAt the back of their minds, most people consider themselves excellent money managers. However, a quick examination of their finances begs to differ in a big way. All across the board, people buckle under the weight of spiraling debts.

A recent study puts the average American household credit card debt to the tune of $15,000, putting the total debt northwards of $900 billion. While holding a credit card is a great convenience, you need to tread carefully. One misstep with your credit card might lower your chance of ever owning a home.

Splurge wisely

From the television, billboards, internet pages down to your social media platforms, you have all these great products thrown at your face. In most cases, you can’t help be swoon. If new swanky handbag, a pair of shoes, watch, or earrings to compliment your new outfit becomes the norm, you’re headed for trouble.

Before you know it, you stretch your credit card to its limit. As tempting as the new products are, learn to say a big resounding no. Otherwise, you will continue paying hundreds or even thousands of dollars in credit card interest each year while damaging your credit score.

Work with a budget

Much of the population roll their eyes at the mention of working with a budget. A recent study by Gallup shows only one in three American budget their finances. Such findings explain the spiraling debt by the average American. Failing to budget only begets more debt on your credit card, which sets an unfortunate series of events.

If you carry more debt than you can service, you get slapped with hefty penalties and interests. Such black marks on your credit history ding your creditworthiness, lowering your chances of ever qualifying for a home mortgage.

Exercise great control over the amount of debt you carry on your credit card bears on incredible benefits in your quest for a good life. It makes you eligible for the best mortgage rates in Salt Lake City from lenders such as City Creek Mortgage, inching you closer to your dream of owning a home.