It isn’t easy to get out of debt, but
when you make that last payment and become completely debt free, the
overwhelming relief and freedom you gain from accomplishing such a huge
relieve can make it all worthwhile.
Getting out of debt is hard, but staying
out of debt can be even more challenging. Here are few guidelines that
may help you stay on track and keep you out of debt for good.
Personal finance experts’ advice that
you should always pay with cash or charge only what you have the cash on
hand to take care of. Credit cards aren’t bad. It’s the temptation and
how we use them that can be bad. Doing away with credit cards altogether
could impact your credit and your ability to leverage money. Therefore,
make a promise to yourself, especially if credit cards are a weakness
for you: limit the number of cards you use to two and only charge what
you know you can pay in full when the bill comes in.
Also, you shouldn’t spend money
extravagantly. Always map out a plan for every expense you want or need
to make. If you want to take a cruise or buy the latest LED TV, plan the
purchase and save the cash up front. This won’t give you the instant
gratification of getting what you want “right now” but if you plan it,
you can still get what you want without the guilt of spending money you
know you don’t have and racking up debt that will weigh you down later.
Plus, if you’ve got the cash on hand, you can still charge it, pay it
off immediately, and benefit from any credit card rewards that may be
available to you.
Make sure you know what usually makes
you to spend money or what is the thing that you find very hard to
resist buying? It could be the latest electronic gadget, clothes, art,
vacations, eating out and so on. It’s the one thing you just can’t seem
to stop yourself from spending money on if it’s right in front of you.
These are your money triggers. By identifying your weaknesses you can
avoid impulse spending by removing the temptation or by avoiding the
temptation altogether. Mine happens to be clothes. It seems I can’t walk
into a boutique store without buying anything so I remove the
temptation by avoiding the store entirely except when necessary.
Forward the money you spent on debt
payments each month to savings. After you’ve paid off all your debt,
take the extra money you now have each month and continue making those
same payments towards your savings instead. Every kobo saved is another
chance towards financial insurance for unexpected financial emergencies.
Everyone should have an emergency fund, and with the state of
unemployment and the current economic outlook. Experts’ advice.
Never forget what you went through when
you are living with debt and probably one of the most significant not to
forget the everyday stress and anxiety that you fought so hard to
eliminate from your life. You were there once, and remembering how you
felt can be an incredibly effective reminder of why you continue to
fight every day to make sure you don’t fall back into the same unhelpful
habits.
By: TIAMIYU ADIO ISMAIL
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