4 Tips On How To Avoid Debt

Avoiding debt requires you to have a solid money spending plan. Avoid the debt trap and thrive with smart use of credit. It's not that difficult when committed.

  • In this short 6 minutes read article:
  • 4 ways to avoid more debt
  • How to seek assistance
  • Budgeting basics

4 Ways To Manage Your Finances and Avoid Going Into More Debt

In difficult times, it is very important to not fall into more debt. When the economy takes a dive and job losses are everywhere, it becomes a time to hunker down and weather the storm. If you have reduced income, or job security becomes shaky, it becomes time to manage the debt you have and not accumulate more debt.

Here are four ways to manage your finances in difficult times:

Completely get rid of the temptation to spend more money on stuff that you want.

This is the time to only spend on needs and not wants. I sure would like a new pair of boots, but it’s time to make sure your rent or mortgage comes first and remains payable in the coming months.

Be cautious about taking in more debt. This seems rather obvious but some people cannot avoid the urge.

Budget for less incoming money

If you are in a two-income household, one partner may lose their job or get reduced income. You may have two jobs lose one.  Whatever the case, write down all your current bills, take a close look at the bills you can cut and get the cutting.

As an example. Cable can be the first to go, there are many other streaming services that are way less. Anything that you can live without, get rid of.

Make some phone calls to all creditors and seek assistance

Tough times affect everyone, and even your creditors may understand the situation. They don’t live in a vacuum. Credit card companies may reduce the monthly payment required. You would not know until you make the phone call. Mobile phone carriers, mortgage or rent can all be reduced or payment time modified, but you have to make the phone call and seek assistance.

Debt repayments or build up more savings?

It is quite tempting to put all efforts to pay off all debts, but emergencies still do happen. Major car break down, roof leak, unexpected medical bills, bereavement in the family and many more unexpected bills may still show up. You could come up with 70% to debt repayment and 30% to emergency savings. This is your decision depending on your circumstances.

You can always find ways to make more money

With advanced technology, it is now easier than ever to start an online business. There are several business research sites available. Click here for a service that has several opportunities and find one that works for you. Good luck

 

What is the good news?

The good news is that there are debt relief solutions available. Debt relief is an opportunity to put your credit card debt behind you without paying the full amount owed. You get an opportunity to renegotiate your debt obligations and get a reduced payment or some debt written off entirely. Freedom Debt Relief offers such help.  

 

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