GetHow

Your How to Guide

  • Business
  • Career & Education
  • Entertainment
  • Health & Fitness
  • Internet
  • Technology
  • Tutorials

6 Tips to Help You Stay Debt Free

February 14, 2016 by Atul Kumar Pandey

Debt is often unavoidable, but in these uncertain economic times, it makes sense to avoid debt wherever possible. The problem is, we live in a society where instant gratification is the norm. If we want something, we buy it. It doesn’t matter if we can’t afford it because credit is readily available. But whilst this might ensure you always have the latest gadgets or fashions, it also means that you are probably massively in debt. So if this sounds like your current financial situation, here are some tips to help you stay out of debt.

Stay Debt Free

Identify Your Spending Habits

I bet like most people you are blissfully unaware of where you spend the majority of your income. You probably blow hundreds of dollars on miscellaneous items without even realising it. This is fine if your name is Bill Gates, but for the rest of us, reckless spending is a seriously bad idea. To avoid debt, you need to take responsibility for your spending. Write down every little thing you spend your money on and then you can see where you can cut back.

Draw Up a Budget

Maintaining healthy personal finances means walking a line balance between income and expenditure. If your expenditure exceeds your income, you will soon be in debt. Yes, it really is that simple. So look at your income and work out what you need to spend on the essentials every month. Then you can see what’s left over.

Avoid Heavy Expenditure

Big debts include buying property or an expensive car. Sometimes it is worth getting into debt to invest in property, but if you have any concerns that you are overstretching your finances to buy a home or a nice car, rent rather than buy or downsize your aspirations.

Learn How to Live a Frugal Life

You don’t need to surround yourself with expensive acquisitions to be happy. It’s perfectly possible to live a frugal life and be content. Instead of shopping in upmarket stores or buying new clothes, look for goods in discount outlets or buy second-hand.

Pay Down Debt

Excess income should always be used to pay down debt. It really is the smart thing to do. There is little merit in squirrelling away money in a poorly performing savings account when you have outstanding balances on credit cards and personal loans. Instead, pay off your debts and reduce the amount of interest you have to pay.

Build a Nest Egg

Savings are good. Once you have paid off your debts, start saving to build a nest egg so you are covered in the event of something unexpected or unfortunate happening. You can’t always see what’s around the corner, but the better prepared you are the less likely it is that you will need to borrow money to pay for it.

Filed Under: Business Tagged: Credit, Credit Card, Debt, Debt Free, Stay Debt Free

About Atul Kumar Pandey

I'm Atul Kumar Pandey, a full time blogger at GetHow by passion and founder of this blog by profession. I write what makes me feel worthy enough to share.

Business News

Borrow Even with Bad Credit

5 Ways to Borrow Even with Bad Credit

5 Financial Hints for People with Bad Credit

Forex

AvaTrade Forex Broker You Can Trust

Crypto

How to Convert BAT to ETH at Best Rates?

Heath and Fitness

Stay Alert

8 Ways to Stay Alert During a Long Workday

Health Insurance

Does a Claim Service Guarantee Really Guarantee a Pay-out?

Breads

Don’t Eat These Foods if You Have Blackheads

Weight Loss Tips for Bride

Weight Loss Tips for a Fabulous You on Your Wedding Day

About Us | Advertise | Affiliate Disclosure | Privacy Policy | Write for Us


Handcrafted with by Atul

Powered by GetHow