Last time, we discussed ways you can avoid incurring debt and this week, we’re going to expand on that theme and add some more steps that you can take to keep yourself out of debt.
At times, everyone usually has to borrow money and incur some debt–this would occur when you buy a home, a car, or perhaps start a business. While these instances are rare, they are also often necessary, but know that you can still find ways to make this transaction less costly and painful. Shop around for the lowest interest rate and use a reputable lender.
Keep good records of your finances. This means balancing your checkbook, keeping tabs on credit card purchases, etc. Remember that you will incur overdraft fees (usually) if you spend more than what is in your account.
If you have a credit card be sure to pay more than the minimum payment every month. You should be attempting to pay off your debts as quickly as possible. In addition, don’t keep more than a couple of credit cards at a time. Also, shop around for credit cards that have low interest rates, and that give you a grace period after purchase before they start charging interest. If you have a balance on a higher rate card, try transferring it to a lower rate card.
These are just a few of the things that you can do to help avoid debt and keep what debt you do have to a minimum. Next time, we’ll discuss credit scams and give you some tips on how to avoid them and ways to repair your credit without getting taken for a ride. Yes, we are a collections agency, but we feel responsible to our community in helping our fellow citizens make wise financial decisions. And, if you need help collecting on a debt owed to you, give us a call for a free consultation.