Five Financial Nightmares to Avoid

Horror Stories That Can Make You Fear Your Finances

Everyone has a fear—whether it’s heights, spiders, or the dark—but there’s nothing more spine-chilling than financial mistakes that could come back to haunt you. Facing your fears is one thing, but when it comes to your wallet, you’re better off avoiding these financial nightmares.

1: Zombie Credit Cards

Credit card debt is like a zombie you just can’t kill. Paying only the minimum amount is a financial horror story waiting to happen. It might seem like you’re making progress, but interest will rise from the dead and multiply. A balance of just a few thousand dollars can take over a decade to pay off, draining your financial resources. Banish these financial zombies by paying as much over the minimum as you can afford each month and watch your credit card debt disintegrate into dust.

2: Ghostly Emergency Savings

Much like ghosts, many people’s emergency savings accounts are nowhere to be found. Living without an emergency fund is like walking through a haunted house without a flashlight—one wrong turn, and you’re lost. The unexpected will happen, whether it’s a car repair or a medical bill. Start small, with a goal of at least $500, but aim for a safety net of six months’ worth of expenses. The military lifestyle can be full of twists and turns, so this stash will help you stay financially grounded during those bumps in the night.

3: Nightmarish High Cost Loans

You might have thought getting that $500 loan from a payday or no-credit-check lender was quite the treat. Well, until you don’t have the dollars required to pay it back, Which could cause you to roll it over into another loan… and then another… and then another. Don’t get caught in a deadly debt trap. If you need to borrow money, stay away from payday and other ghoulish predatory lenders. Seek help from a DoD-sponsored loan program, including Army Emergency Relief, Navy-Marine Corps Relief Society, and the Air Force Aid Society. Or borrow from a responsible, bank-based personal lender that follows all military lending guidelines and can provide confidentiality and convenience when you’re being spooked by a financial emergency.

4: Witchy Overspending Habits

Sometimes that new big screen or shiny new wheels may seem to put a spell on you, urging you to overspend on things you can’t afford. One way to avoid this is by following a budget. If you don’t have one, sit down and write down all your sources of income, and then list all your fixed monthly expenses. Then, make a list of variable costs, like entertainment, eating out, and clothing purchases. Decide on amounts that are reasonable for you to spend on each category. Make sure to factor in debt payments and savings. Try the “50/30/20” rule: budget 50% of your income to your fixed expenses, 30% to variable costs and “fun” purchases, and 20% to savings and paying off debt. Then, look through all the purchases you made in the past month and compare your spending to your budgeted amounts. Find areas to cut back your spending, if needed, and review your budget at the end of every month. If you limit overspending, you could be living a dream and not a nightmare.

5: Cursed Credit Scores

A cursed credit score can haunt you in ways you might not expect. Poor credit can raise the cost of loans, and insurance, and even prevent you from securing housing. Stay on top of your credit by checking it regularly, paying bills on time, and avoiding maxing out your cards. Break the curse by building healthy credit habits, and you’ll lift this financial spell for good.

Don’t get caught up in screams of frustration over your finances. Staying clear of these five financial horrors can keep your money matters from being buried and left for dead.