There are countless blogs, articles, tips, and books about how to get out of debt. The best way to avoid never-ending pressure from creditors to repay overdue bills is to not let the bills become overdue in the first place — or better yet, to avoid getting into debt at all. You should be taking preventative steps to avoid debt.
- Pay with cash whenever possible.
- Stay within your spending limits.
- Avoid impulse purchases.
- Avoid “buy now, pay later”, “interest-free financing” and like offers that merely postpone debt.
- Compare prices before making major purchases.
- Take only the cash with you that you can afford to spend while shopping, and spend only that cash.
- Avoid borrowing to finance “staple” purchases.
- If you cannot avoid borrowing, use the lender that offers the lowest interest rate.
- Avoid bank overdraft charges by keeping close tabs on bank balances.
- Keep a record of all credit card purchases.
- Always pay more than the minimum payment on credit card bills if possible.
- Avoid applying for more than one or two credit cards at a time.
- Consider transferring balances to a lower rate card, making sure the low rate applies to balance transfers.
- Avoid credit cards that charge interest from the date of purchase with no grace period as well as cards that charge interest immediately on a cash advance, plus charge a fee for each cash advance.
If you’re already saddled with debt, you’ll want to consider these debt reduction strategies.
I usually avoid mall sales. I used to overspend every time I drop by a mall that happens to have sales in them. So far, I have learned how to stay away from them. Lucky me, my finances have stayed in shape. Maybe, that can help others, too.