Smart Tips For Staying Out Of Debt*

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*This is a collaborative post*

Debt is a common problem that haunts many people. The last thing you want to be worrying about is getting a knock on the door because you’ve missed a payment to a debt collector. It isn’t easy to stay out of debt these days, with the availability of credit cards and more. So, if you want to avoid getting into debt, here are a few rules to live by.

Always Make a List

No matter what you’re shopping for, it’s always easy to spend more money than necessary if you don’t make a list in advance. Whether you’re doing your weekly grocery shop or buying gifts for your child’s birthday, without planning it can all amount to more than you want to spend. Making a list is a great way to remind yourself of what you actually need to buy. It’s also an ideal way to know exactly how much you’re going to spend. With lists, you can plan how much you’ll spend down to the penny.

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Talk About It

Money can be a taboo subject for many people. There are those who don’t want others knowing their personal finances and that’s okay. However, being willing to talk about money can mean you get good advice you may not have thought of. You’re also more likely to make better decisions when you talk about money. When you voice what’s going on in your finances, you’re less likely to make mistakes in the future. It’s almost like a financial therapy.

Know What You’re Getting Into

There will always be times when a credit card or loan is necessary. Perhaps you need to buy a new car or get something in your home fixed. In these times, you should always be aware of what you’re getting yourself into. Do your research into personal loans online by comparing interest rates and finding out what charges your liable to if you were to miss a payment. Always read the small print before agreeing to anything, even in principle.

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Always Carry Cash!

You can budget yourself by carrying cash instead of using your card. Calculate how much disposable income you have for each week and take that amount out of your bank account. We’re often more responsible with cash than we are with our credit cards, so it’s an ideal way to learn how much you should be spending and how often. You may have to stop buying your coffee from the local café on the way to work in favour of making one at the office.

Turn Off 1-Click

Online stores make it easy for us to purchase goods without hesitation. 1-Click buying is excellent for convenience but not so good for debt. If you have to type in your details every time you go to the checkout, you may think twice about buying. Making it more difficult to purchase online could help you to save a significant amount of money.

Debt isn’t easy to avoid, but being mindful of what you’re spending your hard earned money on, will certainly help.

*Contributed by Sam Jones