In life, we are forced into tight spots and corners by crippling problems that do not leave but attack you relentlessly. That way, you are forced to take measure to ensure that you stay on top of things. This is the time that you will:
- Mess up your credit card finances
- Take loans
- Make bad investments
And many more things that you may do to protect yourself and ensure that you do not sink will lead you to be indebted to someone, a group of people and banks among others. Getting out of debt can be hard especially if you are clueless as to how you can do it.
Top #5 Prevention of Bad Debts
I will not lie to you. There is one cure for being in bad debts and that is prevention. So, we will start by looking at some of the thing that you can do so that you don’t fall into this pit. These will help you make payments on time, track your spending and avoid bad decisions.
- Review Your Credit History
Sometimes, there are messes made but not always by you. That is why you will need to have a very comprehensive list or record keeping system that will allow you to monitor the way that your credits went. This way, you can be always be updated and any or all inaccuracies can be remedied before they cripple you.
- Say No To Credit Cards
This is the main source of American debt because it so easy to swipe away money for irregular items you purchase, that is why you will need to keep these locked up back at home. Use cash whenever possible. That will be easier to keep track of and the debts that come as a result of using the credit cards will be eliminated.
- Have A Strict Budget
Impulsive purchases are the biggest causes of debts. These are done usually never within a budget. You will have to come up with a list of all your fixed expenses, all the things that you buy and need. Then, you will allocate money accordingly to each of them.
Then, you will have to stick to this budget to make sure that you do not make unplanned for purchases.
- Get A Credit Score
This is a history of your annual credit card usage. It will show you where you mess up most. It will help you cut back on the bad expenditures. These reports are also used by your credit card provider to determine whether or not they will give you any more credit.
- Use debt Consolidation Loans
This is where you get all your loans in one place and make one payment monthly rather than many payments that get harder to keep track of as the days go by. They will also have the added advantage of having the lowest interest rates making it favorable for you. All your credit card debt goes into this and you can manage that easily.
Keeping track of everything that you do with your money, planning for the funds and following the plan is the secret to having a better credit score that will allow you to live a debt free life that is the dream of so many people.
So, start keeping records, avoid credit cards and if you must use them, keep track of expenditures, avoid buying on impulse and you will be fine. That will be all for today. If you want to know how to make plans and budgets, you can always get them off the internet.