It is not at all a good idea to round up your debts as it will just worsen your financial situation. This is one reason for many people’s ballooning debts.

For instance, your outstanding debt on your credit card amounts to $23,800 and you feel that it wouldn’t make a big difference if you consume another $200 to make it $24,000. Well, that is so risky and you’re just putting yourself in deeper trouble.

Instead of rounding up, try it the other way around, why not put a ceiling to your debts even if you have high credit limit. Let’s say, your credit limit is $50,000, try to spend only $15,000 or even lower.

If you set a limit on your spending, you’re instilling within you self-control, which is the kind of attitude that lavish spenders should need to possess. If you go on with your attitude of rounding up your debts, you will eventually find yourself doing the same mistake again and again.

Here is a concrete example that will explain why rounding up is not a very good decision to make. You’ve come across a limited edition watch and you’re thinking twice if you should have it. But then you say to yourself that it’s a limited edition and there’s no chance that you’ll ever get to have it if you don’t get it now. Besides, you already have $23,800 debt and another $200 won’t hurt. What if you encounter another limited edition item?

You will most probably be caught in the same situation. As a result, you’re left with a bigger debt and another round of rounding up.

You will surely not come to a stop when you keep rounding up your debts. You will never get to maximize the value of your money if you have huge debts. I know this because I’ve been through it and never will I allow myself to be in that situation again.

Rounding up is very tempting and at the same time so risky. It always will challenge your ability to say “no”, which is never easy if you don’t implore in yourself self-control. First, you start rounding up to the nearest hundreds then to thousands, ten thousands or even to a hundred thousand. Can you already see the effect of rounding up of debts?

When you round up your debts, you are also rounding up your financial standing, not upwards, but downwards.