People follow different paths on the way to debt, but some roads are more fraught with peril than others.  Chances are you may have done at least one of the following before you had to file for bankruptcy.  Here is a list of five things to avoid in the future if you don’t want to drive yourself back into bankruptcy.

1.) Cash advances on credit cards

Do not do this unless there’s absolutely no other option.  Credit card cash advances typically carry both an upfront fee and a higher interest rate than normal credit card charges.  Interest begins accruing the instant you borrow the money, and most credit card lenders require you pay down the balance on your credit card purchases before you can even pay off the cash advance.  SOLUTION:  Use your credit card to charge purchases normally, or stick to your ATM card.  You’re not going to accumulate credit card interest on normal purchases for at least a month, and using your ATM card is free if you use your bank’s machine.  Even in situations where you have to use another bank’s ATM, the usage fee is much more reasonable than using your credit card for a cash advance.

2.) Loaning money to family or friends or co-signing for a loan

Loaning money to family or friends can definitely turn into a sticky situation, even when expectations are established from the get-go.  Often the parties fail to specify when the loan should be returned, and whether or not they want interest.  Sometimes one party may think it’s a gift rather than a loan, and any of these situations can lead to strained or ruined relationships.  SOLUTION:  If you have the money to give, consider giving it as a gift rather than a loan.  If you can’t afford that, it’s not too hard to go online and find a good sample form to use to establish the loan’s details definitively.

3.) Playing the lottery or gambling

“You have higher odds of contracting a flesh-eating bacterial virus than winning the lottery,” said Dara Duguay, Director of Citi’s Office of Financial Education and author of  Don’t Spend Your Raise and The Citi Commonsense Money Guide for Real People.  While gambling or playing the lottery can seem quite appealing, the odds of winning are abysmal.  SOLUTION:  You’d probably be better off taking a gamble on the stock market if you simply must have that rush.  Alternatively, consider spending your money on a sure bet like traveling to an exotic vacation spot.

4.) Payday loans and refund anticipation loans

Tax refund loans are becoming more and more popular.  Often touted as a surefire way to get quick access to your tax refund, these loans  have become a major profit driver for tax preparation firms.  Keep in mind, though, that they have interest rates fairly equivalent to payday loans.  Payday loans often carry upfront fees, hidden fees and administration fees, not to mention a potential APR of up to 200%.  SOLUTION:  Be patient!   Waiting a little bit to get your money isn’t going to kill you.  And in cases where you do absolutely need the money, it’s better to use a credit card.

5.) Rent-to-own furniture and appliances

Going the rent-to-own route is just not a very good decision.  Typically, rent-to-own customers end up paying two to five times the department store cost of the item, with annual APR amounts running anywhere from 100% to 300%.  Maybe that couch only costs you $50 a month, but it’s going to cost you a lot more in the long run.  Putting it on a credit card with a much more reasonable interest rate and paying it off as you can makes a lot more financial sense.  That, or making due with what you have until you can save the money to buy it outright.  SOLUTION:  Save up money and purchase the item outright.  Also consider buying used furniture that can be found easily via the Web through sites like Craigslist.

If you haven’t already filed for bankruptcy but have done any or all of the above things and are now in over your head, it’s a good time to contact a good, experienced bankruptcy attorney to see what your options are.