What precautions can you take so that you do not become one of the thousands who have accumulated more debt th

Question

What precautions can you take so that you do not become one of the thousands who have accumulated more debt th

Answer 1

I personally use my debit card way more than my credit card. My credit card usually comes out to less than $200, because I just put tiny things on it, like lunch at work twice a week, or anything under $10.

I also heard someone once say this:  When buying something, think about how many hours at work it will take you to pay off. If you make $10 an hour, and you want to buy a movie for $30. Think, do I want to spend 3 hours of work to pay this off? Or can I wait a month until the price is cut in a third? Have that mind mentality when purchasing. Do you really NEED it when it is most expensive?

Also- Try to find a credit card with a lower interest rate. Some credit cards have as high as 20+%, but you can easily find one with a cheaper rate, if you know you will be paying interest.

Answer 2

DON'T CHARGE!  Pay cash!

We are pretty much debt-free except our house and one car loan that is almost paid off.  We only buy what we can afford to pay for,

Answer 3

rule #1- this rule supersedes all.. always have more cash on hand than debt,(1 exception the purchase of a house.)

'' '' ''#2 -never borrow if you can pay cash .#3 -bank every dollar you make (no exception) don't get any cash back from your deposit,if you need cash return to the bank for it when needed,#4 -when you see something you want to buy wait 3 weeks before you buy it ,for instance a computer,tv,car,etc this cooling off period will give you a chance to evaluate the purchase and change your mind.#4 -save money in a seperate account every week ,save every dollar you can get your hands on.#5 -don't buy anything you don't intend to pay for ,let words like default and bankruptcy be blasphemous to you...#6 - finally,this is a way of life ,a way of treating others ,it extends beyond money ,and affects every facet of your being,it boils down to honesty,and work ethic  ,and fairness,be this way regardless of the way others are ....................tom

Answer 4

hmmmmm

Answer 5

The reason most people get into financial difficulties is that they do not work to a budget and they spend more than they are earning. Most of us have a fixed income such as a wage or salary. Firstly we need make  weekly, monthly and yearly budgets which itemise all our necessary out goings. Our original budget should include a savings budget. This should be funds to take care of emergency and unexpected spending. Besides this we need to plan to save for our holiday and for birthday and Christmas presents etc. These totals must not exceed our total income. Secondly we need to follow our budget and not be tempted to buy things on the spur of the moment ( impulse buying). When going shopping for groceries etc., make a list of the items you need and then buy to the list. Do not be tempted to fill the large shopping trolley (they are,itentionally, made large for that purpose) with items that are not on your list. You will note from this that it is crucial to get your budget to balance. If your budgeted needs are in excess of your income you are going to be in trouble somewhere down the track. You will need to cut back on some of your expenses.

How do you do this?

Lets say you have budgeted to spend $300.00 per week on groceries. You should still be able to buy all the items on your list but instead of buying the expensive item select the store's own brand which is usually much cheaper. If the green vegetables you had thought of buying are quite pricey substitute those with another green vegetable  that is cheaper. If fresh tomatoes are too dear, buy peeled tomatoes in tins. The same goes for peas and beans. They are often cheaper that way. Never buy fruit when it first comes on the market in its season, that is the time it costs the most. Be patient and the price will drop later on in the season. Instead of buying the most expensive cuts of meat, go for something a lot cheaper (the nutritional value of meat does not vary proportionately to the cost). Plan to make meals that are wholesome and tasty but which cost less. Above all do not be wasteful.

One other important way to save on expenses is to look very carefully at each item on which we spend money. Think about it carefully, do we really need to buy it or can we do without it? That cup of coffee when out shopping that costs $3.50 - how often do we buy it?   Twice a week -that's $7.00 per week, that's $364.00 per year or $3,640.00 in ten years. Why not wait until you get home and have you coffee there - much cheaper, isn't it?

Answer 6

Never charge more than you can pay off when the bill comes.