How to Avoid Debt
Others may tell you that it’s normal for someone to have debt. This is common for those individuals who are having a hard time to maintain their lifestyle. It could also be about the salary that they received per month from their employer. There are emergencies that they have to attend and that is something that they are not expecting and this is one of the reasons why they have to consider loaning some money from banks. It is hard to tell what is someone is going through, especially when we are not in their shoes.
If you are employed, then it is easy for you to consider bridging loans. There is nothing wrong when you loan money from a bank or any financial institutions such as the collection agencies. It is just that you have to have spare money to pay for them in the future. You also have to consider the interest rate that you have to shoulder every month. If you can just save some money in order for you to buy that item after a couple of months, then that would be a good thing as you don’t have to worry about debts.
If you are planning to use your credit card, then you just have to choose the card that will give you lower interest rate whenever you swipe your card or you have to pay installment. There are cases that we are becoming addicted when it comes to shopping because we have a credit card. Credit card is easier to use, unlike loan as you have to apply for it. Whenever you use your credit card, you have to make sure that you pay this one in time to avoid penalties and higher interest rate. If you can pay things in cash then that would be a good option.
You should also know how to create a very clear budget for your expenses. If you have multiple jobs then that would be a good option for you to utilize your expenses and the earnings you get every month. Make a list of the items that you just have to buy per month, such as your groceries and food. If you have your investment, then you can take part of a share when it comes to one of your jobs. Utilities are always part of your expenses and that is something that you have to allocate more. If you have spare money, then you just have to use it as your emergency fund or personal saving.
If you think that your monthly income is not enough, then you have to cut down your expenses. It doesn’t mean that you have to live in a poor manner, but you are just trying to save some money. If you still have debts when it comes to your previous loan or credit card, then you have to settle that in case you have plans in the future to loan money. It will be difficult for you to be approved once you have existing balances.