December 3rd, 2016 – Top 8 Ways To Avoid Debt As Recession Bites Harder – John Uzie
In striving to meet the essential needs of life and enjoy comfort, many individuals incur debt. To be in debt is never fun, it can cause enormous emotional and psychological problems. An essential requirement to achieve personal financial success, is to be debt free.
WAYS TO AVOID DEBT:
1. Have a budget plan ; a well thought out and planned budget is a must for you to be free of debt. Budget should be planned within available income, priority should be given to basic and essential needs. Less amounts of money should be spent on wants.
2. Have a savings account ; a regular savings scheme is essential, no amount is too small, what matters is discipline and consistency. Every amount you save counts, in times of financial emergencies, you savings can be a life saver.
3. Avoid ” buy now, pay later offers” ; buying of goods not planned and budgeted for is a sure way into debt. Such goods are usually over priced.
4. Control spending impulses ; excessive spending on goods and services that are not budgeted for is not wise. Spending on items not captured in your budget should be minimal. As a rule small amount of money should be allocated for miscellaneous expenses in your budget.
5. Don’t carry large amounts of cash ; when you have no plans for shopping, don’t carry large amounts of cash when leaving the house, this will help avoid unnecessary spending.
6. Have a payment plan, if you are in debt ; work out a feasible and realistic plan to pay any debt you owe. Discuss and negotiate with your creditors, to work out a convenient and acceptable plan of payment.
7. Compare prices of goods and services ; before making payments or purchases carry out a market survey to determine the price of goods and services, this effort can save some amount of money you can put to other use.
8. Don’t borrow money, except you really have no other choice, and borrow only amount you can conveniently pay back.
” Debt can turn a free, happy person into a bitter human being “. ~ Michael Mihalik
[By John Uzie]