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Thinking of applying for more credit cards when you have bad credit? Think again.

Debt has become a norm in our society today. 

Just about everyone has had some sort of debt at one point in their life. While a large percentage of people are responsible enough with their credit cards and pay off their balance in full every month, unfortunately, the nature of borrowing money also draws in many people who are financially irresponsible.

The result of not paying off the amount due properly is bad credit. People borrow money and fail to pay them off in time, resulting in higher interest rates and fees, and then it becomes a never-ending cycle. As a result, predatory lenders looking for opportunity to take advantage of people in poor financial health swoops in and offers to lower the interest rate of current debtors and guess what - The cycle repeats itself.

The most important thing to do when you have bad credit is... SIMPLY STOP BORROWING. 

Fortunately the people with bad credit will have less borrowing power as long as they don't fall victim to predatory lending and payday lenders. It's that simple really! Look for ways to increase your income by working extra hours on weekend, then attack your debt. Forget investing until all your debt is paid off because the interest rate from your debt is likely to be much higher than the dividends and payout you will receive from any investment.

One of the worst type of debt are student loan debt because they are not bankrupt-able, not that bankruptcy is a good idea, but just something to keep in mind.

So long story short, if you have poor credit, then rather than finding ways to increase your credit limit, find ways to increase your sources of income and tackle all your debt. There are two ways to pay off debt. Dave Ramsey recommends paying off debt from smallest to largest, but if you are good at planning, personally I recommend paying off debt with the highest interest rate first. However, if you're the type of person who are easily motivated by small victories, follow his advice instead and just pay off your debt from smallest to largest.

Good luck and be sure to share your progress in the comments below (or gloat about how debt-free you are if you fall into this category instead although everyone most likely have had some sort of debt story in the past that they could share!).

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