Avoiding Debt

This is a short article on ways of getting out of debt.

There seems to be more people in debt now due to the ongoing recession. People losing their jobs or simply wanting to keep up with the Joneses. There are any number of must have new gadgets coming onto the market every month and they are all expensive. The trouble is unless you’ve saved up the money you will have to use credit to buy them if you feel as though you have to have them.

The adverts we see and hear are all very persuasive and they even offer inducements such as zero interest or buy now but don’t pay for a year. The companies who offer these deals to you will not be doing so out of the goodness of their hearts. They will still be making money. More often than not you will be charged more at the end of the deal than the book price when you first walk into the shop.

You have to be a savvy shopper due to this and make sure that you don’t fall for the advertising tricks that are put in your path.

I’ve researched different ways for getting out of debt without getting into more debt as you go along.

Try saving up for things that you need rather than using credit to buy everything instead of using your credit card or going out and getting a loan.

Make sure that you pay off your credit cards each month. Credit cards have high interest rates and if you carry over a balance each month and just pay off the minimum you will have a credit card debt for years and pay back more than double the amount you borrowed. If you do carry forward a balance then try and pay off more than the minimum amount each month so that the debt is paid off quicker. This way you won’t be repaying as much to the credit card company.

Try and do the same with any loans you have. Make sure that you know the penalty for paying the loan off early but if you can pay off more each month again not only will the loan be settled earlier you will also be able to avoid paying huge amounts of interest.

Keep your discipline and don’t be fooled into buying what you don’t need. If you want to buy a big-ticket item then do your research and see who can sell it to you for the cheapest price and then start saving for it. Don’t think that because it’s interest free it won’t cost you anything in the long term.

When going shopping know what you need and stick to it. Make a list and don’t buy anything that you don’t need. Again that way you will know roughly how much it will cost you.

Have a look at all your household bills and see if you can switch them to cheaper deals. There are enough comparison websites nowadays for you to get cheaper rates. Don’t become lazy and stay with the company your with.

Try and pay in cash again instead of using your credit card. Again you can then only spend what you have.

You could also take a part-time job or look at the options of working from home. Do your research and see what is best for you.