The sheer dream of a lot of people these days is to remain debt free. In the world we live in today, it can be very hard to remain debt free. The easy to use money that personal loans and credit cards offer these days, make it hard enough for an individual to keep himself/ herself out of the debt tangle. Yet, if you can organise your finances then you can stay debt free.
Six intelligent tips are mentioned below, which can assist you in your pursuit to remain free from debt.
- Financial planning
Financial planning is among the most vital components when it comes to monetary management. It can aid you in determining a limit for all your expenses and in doing so it will assist you in managing all your finances. Creating a budget is an easy exercise that can make sure your spending stays in check and you remain free from debt.
- Handling debt repayments
The top tip for staying free from debt is to avoid from taking on more debt. Try to pay off debt repayments so that late payment charges aren’t accrued, which will add to your debts otherwise. If you aren’t able to pay full repayments then at the very least you should try to pay off the minimum amount.
- Watch your financial status
The very first thing you need to do is to become mindful of your debts and assets. It’s an excellent idea for you to evaluate the debts that you’re indebted to and the assets that you possess on a yearly basis. This will provide you with a healthier figure about your financial standing and your net worth. This information in hand will enable you to make prudent choices regarding your spending on loans and on credit cards and help you to remain free from debt.
- Debt consolidation & refinance is a choice as well
If your debts are way too much for you to pay then you can choose for debt consolidation or refinance. Both of these alternatives can aid in extending the repayment period and provide you with a lower rate of interest. This will make it simpler for you to pay back the loan and become free from debt.
- Avoid or stop using credit cards
With credit cards, people are tempted to spend a lot more than they should – it’s because credit cards are a lot more convenient and easy to spend money. So, people end up spending more than they should be spending otherwise. Henceforth, as far as possible, make it a habit of paying only with bills – It will help you to keep an eye on the available funds and it will assist you to prevent spending more than it is actually required. “According to a study – the more money, particularly crisp bills people use to pay, the less money they did like to spend”.
- Financial counselling is an alternative
You can always take financial counselling if you’re unable to manage your finances and aren’t aware of handling them either. As financial counselling is rendered by non-profit organisations and so it is a free service. Hence, you can take their guidance to sort out your finances and solve the debt problems that you are facing at the moment.
Complying with the recommendations gained through financial counselling can go a long way in keeping you free from debt.
Nevertheless, if you come across a pressing situation like in an emergency, you can reach out to the money lender for cash fast loans who can offer you quick cash loans for short-term against your valuable collateral such as a car, motorbike, boat and truck or any other automobile you may own. Even if you’re unemployed or have a bad credit rating, still you can get a pawn loan or secured bad credit loan from a car pawn shop.