Tips To Being Debt Free

When it comes to being debt free, there are a few things the average person can do to eliminate or drastically reduce debt.

Common Reasons People Get In Debt
There are a few reasons why people find themselves in debt. One of the most common is student loans. These are not always avoidable. Of course some forms of education such as trade school or certificate programs, costs much less, but there is still an expense. If you go to a local community college or pay as you go on an affordable online program you may be able to cut back on the grand total of your college education. This is a nearly unavoidable debt. The best tip is to look for student aide and scholarship programs to help reduce the loans that you’ll have to take for your college education.

Another reason people go into debt is over medical expenses. Those who are without insurance or have insurance with high deductibles may find themselves in a medical bind. Prescription medicines, doctors visits and wellness can cost thousands of dollars for those without adequate healthcare. There are some prescription savings plans and sometimes doctors will offer reduced prices for cash paying patients.

Some people go into debt over large purchases such as cars, homes, student loans or medical bills but smaller purchases can also dig you more into debt as well. For instance if you are behind on your rent, Infinite Energy utility bill, car payments, etc. While these payments may seem small they can add up fast and before you know it your are drowning in unpaid bills and late fees.

Some debt is completely avoidable. Those who have a habit of charging when they do not need to can easily rack up credit card debt. Credit cards are good to have because they will help you establish good credit. The bad side to credit cards is high interest rates and rolling balances. When you charge something you want to make sure you have enough money on hand to pay it off in full when the bill comes due. This is a great way to boost your credit score continuously.

Financial Mistakes To Avoid
When it comes to finances you will want to make sure you are spending smart. This means you should compare prices before you buy things. When you buy a house you will tour several houses and then make the best decision for your needs. The same is true for everything. When grocery shopping you should browse the sale papers and make sure you are shopping where the deals are. When you are establishing utilities at your home you will want to shop the local utility providers as well, you might be surprised how much you can save by shopping and comparing prices.  You should also shop around for different life insurance, homeowners insurance and auto insurance plans. You can find quality plans at reduced monthly rates. All of these savings will result in money saved monthly. You can then take that money and put it towards any bills that you may have.

Tips To Pay off Debt Quickly
When it comes to paying off debt quickly you may want to consider reading money management books or taking a smart money management course. Libraries often offer these courses for free which is a huge bonus since you are already trying to save money. Cut back your monthly expenses by having your utility bills lowered. When you have student loans, credit card debt, medical debt or other debt that needs to be paid off you need to make that your main priority. Whenever you have any extra money in your monthly budget, send that to your bill with the highest interest rate.

You can also consider a part-time job, seasonal employment or a side job such as surveys, web site management or freelance work. This is a great way to make some money on the side that can be reallocated towards any debt that you may have. By paying off anything with a higher APR first you will end up saving money in the long run. You can also look into balance transfers and move debt from high interest cards to low interest cards as a way to lower monthly expenses.

By following these tips you will be able to make smarter financial decisions and gradually pay off any debt that you may have.

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Christophe Rude

Christophe Rude

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