Staying out of debt can be just as hard as getting out of debt.
However, a number of tactics exist that you can use to protect yourself from being or falling into a hole.
Apply the ideas listed here to make sure that you both eliminate debt and avoid future obligations.
Keep reading for more.
Never co-sign a loan.
You put your credit rating and financial future into someone else's hands any time that you do this.
Regardless of how much you trust them, their luck can change in an instant and take you down with them.
Only use credit cards for absolute emergencies.
You should never finance a large purchase, aside from maybe homes and cars which you can do outside of credit cards.
In the long run, your money can serve you best accruing interest rates, saved or invested.
Then, you can buy what you want and still have some money left over.
Make a budget and stick to it.
If you are unsure how to do this, just track your spending for a month.
That is your real budget, even if it is not by intention.
From there, you can start making tiny and easy changes to start saving money.
Make the most of your savings Once you get some savings going in your budget, stash it away somewhere.
Start an emergency fund in an easily accessible account at your bank.
Once you have a half a year's expenses saved up, start looking at conservative savings vehicles like money market accounts and certificates of deposit.
Past that, move into bonds, real estate income trusts and dividend stocks.
The last move is going into risky growth stocks and mutual funds.
Don't hide your debts Never keep your debt a secret from your significant other, especially if you are married.
This breach of trust can kill your relationship and is never worth it.
Be smart about schooling A diploma or degree can be a wonderful investment that pays itself back many times over in the future, but that should not enable you to spend eight years going to expensive colleges.
Watch out for student loan debt.
Make sure your credit report is perfect Never give anyone a reason to put a dent on it, but also check it annually for existing dings.
Take the steps necessary to correct them or remove them.
Shop around for better financing Do this whenever you can.
You can do this every six months with your car insurance renewals.
Also refinance your car whenever you can, as well as your home mortgage.
The same can also apply to such things as re-mortgaging or renewing a mobile phone contract.
Don't be afraid to approach your existing creditor for a better deal in order to retain your custom As you know, debt can be hard to avoid and even harder to get out of.
Apply all the ideas presented within this article to prevent debt from dictating your future, whether you are in it and want out or just hoping to stay away.
However, a number of tactics exist that you can use to protect yourself from being or falling into a hole.
Apply the ideas listed here to make sure that you both eliminate debt and avoid future obligations.
Keep reading for more.
Never co-sign a loan.
You put your credit rating and financial future into someone else's hands any time that you do this.
Regardless of how much you trust them, their luck can change in an instant and take you down with them.
Only use credit cards for absolute emergencies.
You should never finance a large purchase, aside from maybe homes and cars which you can do outside of credit cards.
In the long run, your money can serve you best accruing interest rates, saved or invested.
Then, you can buy what you want and still have some money left over.
Make a budget and stick to it.
If you are unsure how to do this, just track your spending for a month.
That is your real budget, even if it is not by intention.
From there, you can start making tiny and easy changes to start saving money.
Make the most of your savings Once you get some savings going in your budget, stash it away somewhere.
Start an emergency fund in an easily accessible account at your bank.
Once you have a half a year's expenses saved up, start looking at conservative savings vehicles like money market accounts and certificates of deposit.
Past that, move into bonds, real estate income trusts and dividend stocks.
The last move is going into risky growth stocks and mutual funds.
Don't hide your debts Never keep your debt a secret from your significant other, especially if you are married.
This breach of trust can kill your relationship and is never worth it.
Be smart about schooling A diploma or degree can be a wonderful investment that pays itself back many times over in the future, but that should not enable you to spend eight years going to expensive colleges.
Watch out for student loan debt.
Make sure your credit report is perfect Never give anyone a reason to put a dent on it, but also check it annually for existing dings.
Take the steps necessary to correct them or remove them.
Shop around for better financing Do this whenever you can.
You can do this every six months with your car insurance renewals.
Also refinance your car whenever you can, as well as your home mortgage.
The same can also apply to such things as re-mortgaging or renewing a mobile phone contract.
Don't be afraid to approach your existing creditor for a better deal in order to retain your custom As you know, debt can be hard to avoid and even harder to get out of.
Apply all the ideas presented within this article to prevent debt from dictating your future, whether you are in it and want out or just hoping to stay away.
SHARE
