Make a budget and follow it.
If you really want to get and stay debt free, then you probably should start with an honest look at where your money is going.
Not sure where to start? Click here for some quick tips on organizing your finances and making a budget.
Think through your purchasing decisions.
The more costly something is, the more thought you should give it.
Take the cost of the item you wish to buy and weigh it against the actual need you have for it.
We live in a society where consumerism is embraced and marketing is impossible to avoid, but don't let
your decision making be influenced by emotions when you can't afford it.
Small expenses add up big.
Sure, the extra expense is just a few cents a day, but how much does that add up to over the course of a month, a year?
And how many 'little' expenses does it take to add up even on a daily basis?
Convenience items such as take out coffee, eating out at lunch, and other daily purchases can add up to significant amounts.
Beware the lure of easy credit.
Not too long ago credit was actually challenging to get; creditors had to make a case to a big bank to take out a loan, and those
considered even the slightest of risk were normally denied. These days, many lenders have shifted the way they do business, and are prepared to accept
even high-risk borrowers - prepared to write off more bad debts in order to make their profits through volume instead.
That need for volume means creditors do what they can to get people borrowing. Easy credit offers and extended payment periods advertised heavily, whatever it takes. As attractive as credit may seem at times, the lender is in it to make money.
While credit cards are convenient, they're one of the most expensive kinds of credit to carry, with interest rates as much as 28 percent for department store cards and near 20% for many on other plastic. It's a good idea to have at least one around in case of emergency, but avoid using it unless it's absolutely necessary, and pay off any charges you do make before any interest charges are made.
Always pay your bills in full, and before their due date.
Fully paying your bills prior to their due dates will save you money in late fees and interest charges; and it looks great on your credit history.
There are times when you may be tempted to use the money elsewhere and keep a balance until that next bill rolls around, but that's exactly how getting in debt starts.
