Can we actually avoid debts? Is it possible to thrive in this modern world without taking any secondary monetary help to fill our needs and wants?
The answer still remains yes. At least you can pretty much do without consumer debts, like credit cards, payday loans, or personal loans.
Mortgage, car loans, and other potential secured debts are useful, and I won’t be commenting much about them. If used correctly, then these loans help you to build assets that become a profitable feat later on.
So, you can pretty much do without unsecured consumer debts, if you can become a little sensible and control your spending hand. This is what we are explaining in this post with these tips to stay debt free and increase your financial standing.
Don’t Buy what you don’t Need
This is the biggest reason why people fall into debt? They buy what they don’t need. Most of their purchases are made up of objects, which are mostly projections of their wants and luxury needs.
Yes, this is what really matters the most if you want to avoid debts seriously. If you look very carefully, then you will see your credit card bills are not only a mere reflection of the purchases you have made.
The bills also show your spending habits, from which you can learn, how you have spent too much, when you could have just let your luxurious thoughts pass away, instead of indulging in them.
It’s just plain and simple, don’t buy what you don’t need, to maintain a healthy lifestyle. The decisions are yours, by the way. Only you know what you need and what you want!
Your utility bills, grocery bills, mortgage payments, these are all necessities. But, modular kitchen designs, smart home appliances, frequent eating outs with your buddies, are to be considered as desire related expenses.
Be Patient and Consistent with your Debt Payments
You need to stay focused while paying off your debts.
It takes time to pay off your debts. And it is also quite obvious, you will be gaining interest fees on your debts, based on the amount of time you are taking to pay off your debts.
The more payments you make on your debts, the faster and less costly it will be for your debts to go away.
More so, in the meantime, you should not become hopeless and quit your debt riddance. A feeling might come in for you, that you are not being able to clear your debts, or it will take ages for your debts to get cleared. However, you should keep up with the payments, despite all mixed thoughts you are getting.
Budgeting is your best way to avoid Debt
You don’t need to be a brilliant mathematician to understand and do budgeting.
If you can read, write and do the basic calculations like addition and subtraction, then you are all set and ready to open up your own budgeting infrastructure.
You can make your own bare-bones budget by tracking your monthly expenses and listing those expenses, one by one, with dedicated amounts written beside each of them.
Once you are done with your expense list, you can add up your total expense, and then subtract this whole amount from your total income. You should also include your debt payments, and the amount of savings you do, in this expense list.
You should always aim to equal out your income and expense. This way, you can have the optimum balance between your income and expenditure. This is a practical tip to stay debt free.
Remember, whatever happens, you should be adhering to the budget, and try to maintain the same amount of expenses each month. Even though this is not possible each month, still holding onto the same expenses, is a good indication you are not losing control of your finances.
Work Together with your Partner, if you are Married
Married couples need to split finances. Things will get even more effective if both parties are earning members of the house.
One of you can completely dedicate his or her part of income to total debt demolition! You, on the other hand, can go along with daily expenses and all the monthly bill payments, and/or monthly savings amount.
If you have found this interesting, and want to split expenses, then it should be done based on who earns how much. Therefore, sit down with your spouse and analyze who intends to handle what payments.
Take Help of Debt Relief Options
Debt consolidation and debt settlement will always remain the fastest way to get rid of debt by providing professional legal help.
Primarily, you can consolidate your credit card debt if you have multiple credit card numbers, and the same thing can be done for multiple payday loans or personal loan debt.
You should always do debt consolidation professionally, so you can save reasonable amounts on your overall debt payments, and also get a feasible and seamless payment plan, devised by the debt relief company, under your creditor’s rules and regulations.
You also have debt settlement open for you, in which you can save a lot by negotiating with your creditors to settle your debt for a reduced, agreed-upon amount.
Both debt settlement and consolidation involve several underlying steps and paperwork. So, it is better to work with a debt relief company, to get proper guidance!
By following these tips to stay debt free, you should be able to eliminate debts pretty soon. All the best for a debt-free journey ahead!!!
