Tips To Avoid Getting Into Debt

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.