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Home » Surefire Ways To Stay Out Of Debt

Surefire Ways To Stay Out Of Debt

September 21, 2021 By The Saving Gal | This article may contain affiliate links. For more information visit our Disclosure

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Surefire Ways To Stay Out Of DebtNobody plans to get into debt, save for getting a mortgage for their first home. Despite this, many people find themselves falling into it. If you’re on the precipice of getting into debt, you mightn’t know what to do.

Your money could already be stretched thin, and you could have some large purchases coming up. You’re not the only one to be in this position. Quite a few people have pulled themselves back from this point.

To do so, they’ve taken advantage of a few tips and tricks to stay out of debt. With how many people some tips have helped, you should be guaranteed that they’ll help you too.

How To Avoid Getting Into Debt

Keep An Eye On Your Credit Card

Credit cards can be a blessing and a disguise. While they can be helpful in your time of need, they can also be a significant source of debt. The trick here is to not use your credit card too often. When you do, you should make sure that you can pay it off quickly.

You could consider switching cards. If you do so, you could find options with a much lower interest rate. If and when you use these, you’ll have to pay back much less in interest. As a result, you’ll have a much lower risk of debt.

The likes of comparecredit.com and others can be helpful in finding the right credit card for you.

Have An Emergency Fund

Emergency savings will be a significant blessing if you have some. If you don’t, then it’s worth working into your budget. Unexpected costs can come up. If you’re unable to pay for these, then a loan may be your only option.

Naturally, an emergency fund will be the easiest way to avoid this. You should only use this in specific situations that are unavoidable, such as a home or car repair.

Focus On Your Needs

Everyone has some unnecessary habits that they can cut out. Whether or not they want to is a different story. If you need to tighten your belt, however, you should cut out these habits. Put your needs first and then see how much you’re able to spend on your desires.

Some months, you might have to cut them out completely, while you can loosen your belt a little bit on others. The key to this is finding a good balance. You’ll have to put your needs first and then determine what you’re able to spend on other things.

Though there might be other aspects to your budget, such as bills, they’ll form part of your overall needs.

Wrapping Up

Many people fall into debt because they can’t stop themselves from spending. That mightn’t be a choice, however; they simply mightn’t know how to cut down on certain expenses. By using each of the above tips, you should avoid this.

If you already have some debts, then you can still use those tips to prevent yourself from getting any deeper. Not only will that mean that you can stay out of debt, but work your way out if any debts you already have.

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Are you up to your ears in high-rate credit card debt? Don't worry; there is a way out! Here are 7 smart tips for getting out of credit card debt fast. Does the thought of checking out your credit score make you want to scream? Credit cards are a great way to lessen that anxiety. Like all good things though, as quick as it can help, it can also destroy if you don't pay on them. Once you pile on the credit card debt, it can be a challenge to get out. Don't let this discourage you. There are a few ways to save yourself from drowning in numbers. Here are a few tips on getting rid of credit card debt and claiming your life back. 1. Stop Using Your Card If you know for a fact that you have terrible spending habits, hide your card from yourself before you sink too far into the pit. You can cut it up, lock it in a safe and lose the code, package it in duct tape and bury it in the backyard, use a wood chipper, the options are endless as long as it is out of your hands. If you're using it to pay your bills then, try and set up a payment plan with your utility company. Or downgrade your house or car. Fitting your bills into your budget will make you less likely to use your credit card and give you a little breathing room for managing credit card debt. 2. Make a List of All Your Debt Studying your enemy is one of the key factors of defeating it. Tis means you should make a list of all the credit card debt you've currently got under your belt. Making a list will help you figure out which one you should prioritize and pay off first. How do you determine this? Check out the standing of all the existing credit card debt you have and their interest rates. 3. Come up with a Strategy Credit cards can do massive damage to your credit score so you want to pay the one with the highest interest off first. After you've paid off that one, go on to the next one. Eventually, you will pay them all off as you go down the line. Make sure you continue making minimum payments on them after so you don't find yourself drowning again. 4. Try to Get a Lower Interest Rate Not all credit card companies will be agreeable about giving you a lower interest rate, but it never hurts to try for the sake of getting lower payments. Sharpen up your negotiation skills by using any kind of leverage you can to get them to work with you. Bringing up how long you've been with them or your good standing up to this point might get them to budge a bit in your favor. If they are completely unagreeable, then transferring your debt to a new, lower-rate card might be an option, or you can take out a personal loan. Personal loans can be a little harder to get, but you'll find that if you can get one to pay off your debt, the interest rate is usually way lower than your credit card one. Eventually, the loan will replace your credit card debt with an installment loan. Believe it or not, this will actually look better on your credit. To find out more on personal loans you can visit this website. 5. Find a Payment Plan If getting a lower interest rate still doesn't work out for you, then it's time to figure out some other options. The easiest thing you can do is either ask for a deferment or a new payment plan. Credit card companies like money, so they will most likely work with you on this so they don't have a non-paying account in their system. 6. Limit that Spending If you limit your spending, you'll have more money to put toward your credit cards each month. Just think: skipping out on that morning coffee could allow you to pay your debt faster and lower your interest rate. If you want to make a little game out of it you can join spending challenges. This could mean going on a 14-day to a year-long spending ban depending on what's best for you. This is recommended if you just don't trust yourself to stay on budget. If you have self-control, then it's just a matter of keeping up with it and throwing these savings into your loan debt. 7. Put Any Extra Income Towards Credit Card Debt Budgeting can only take you so far so on top of putting any extra savings toward your debt. You can take on little odd jobs for extra money. There most likely a ton of options available for you in your area. You've just got to call around or surf the web to seek them out. Consider turning any kind of hobby into a money-making business. For example, if you know you're a great artist, then you can open yourself up to commissions. You might be surprised at how many people may pay. A Guide to Getting Rid of Credit Card Debt Just because you feel like you've dug your own grave, doesn't mean you have to stay that way. There are ways of getting rid of credit card debt. Come up with a foolproof plan to tackle it, try to find a lower interest rate, ask for a new payment plan, or just take on a few extra odd jobs. Put your credit cards back in your control. If you're new to the credit card world, you could make a lot of mistakes that will put you into debt without even realizing it. Visit our blog for a beginner's guide to credit cards

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