Unfortunately, and based on studies, people do not deal very well and take debt seriously, this leads to huge bills and debts accumulation and long term interest payments.
Take the following few advices to avoid debts:
– If you have credit card debts, which is in most cases the biggest source and the most serious of debts accumulation especially for students and newly graduates people, you must pay off as quickly as possible to avoid long term debts. Take this advice seriously, because ignoring or delaying any payment can become a nightmare and eat you alive.
– Learn and learn how to calculate interest, this e-book will explain step by step how to perform these calculations.
– ALWAYS check the interest rate. You must ASK first, you must receive clarifications before choosing a credit card. Always assume that you have the lowest interest rates.
– Having multiple cards is like owning multiple weapons and you will risk injuring yourself. Keep one or maximum two credit cards with you. This way you can handle your debts easily
– Educate yourself on how credit cards calculate interest. Then, check the interest rate on your credit cards.
– Know what you want to pay! Never use your card for something you cannot pay for with cash. When you have a checking account and have a debit card, use it. This card is very useful for small items rather then even paying interest for small items. Credit cards make paying money easy. They also make going into debt easy
Always have a plan to pay back your debts. If you need to buy something, think first how can I pay it back?
Keep in mind one word: Interest
Interest is a magical tool, interest makes you rich or poor. Creditors always use it to their advantage. Remember! It can also work in your favor if you really followed this guide. Let the interest be working FOR YOU instead of AGAINST YOU.
However, getting out of debt and becoming debt free will require patience, commitment, and consistency. The most important part of this step is to restructure the way you pay bills and set priorities.
We know very well that everyone is excited about getting a fresh start especially upon graduation, and unfortunately in most cases this start is at the same time the beginning of debts!
You will accumulate loans, credit card bills, and miscellaneous expenses and costs. These debts you are building will unfortunately stay with you a very long time if you do not know how to manage and get rid of them in the shortest time by paying the least interests. Debts and interest charges can eat you alive!
The first advice to become debt free is to pay attention on how you are spending your money, the second advice is to summarize your debts and get a debt reduction plan.