Ask any expert and they will tell you that the number one cardinal rule of staying out of debt is through ensuring you cut down on your expenses. Of course, being told to spend less is one thing and acting on it another thing all together. However, the allure of being debt free and stress free is something that most of us can’t resist. We badly want to be able to manage our debt or better still, stay out of debt all together. But, is it possible to stay out of debt? What measures can we put in place to ensure that we stay out of debt? There are simple rules that if religiously followed, can help a person get and stay out of debt.
Always spend less
With attractive mindboggling offers from all corners, the temptation to buy things we don’t need with money we don’t have has never been higher. There are always attractive offers that push us into spending more than we had budgeted for. The first cardinal rule you need to always observe is to never spend cash on something unless you can afford or badly need it. Ensure that you draw up a budget, know how much you earn, how much you spend on your bills and most importantly, always stick to your budget no matter how attractive offers are coming your way.
Make it a habit to pay in cash
That credit and debit cards make people to spend more is not refutable. Credit cards make people comfortable and confident knowing that they can spend the money they don’t have and pay for it later. It gives people some sense of false confidence. The downside is that it serves to push people deeper in debt as they do not feel the pinch when spending but are dumb struck at the end of the month when they are required to pay debts. So what’s the remedy? Always pay for your goods in cash. If you don’t have the cash to purchase a particular item, chances are that you don’t need it.
Give credit card offers a wide berth
With numerous credit card companies jostling for customers and rolling out attractive credit card offers every now and then, sometimes it becomes impossible to resist the offers. However, if you are to stay out of debt, you need to ignore the offers. Only use credit cards during emergencies and spend within your means. You need to spend what you are capable of paying at the end of the month.
Let’s face it. We live in a consumer driven society where everything is packaged to look attractive and pique your interest. Only spend on things you need and avoid impulse buying. Ignore the incessant calls from overzealous marketers. If you can’t resist offers, it’s imperative to avoid going to certain stores or better still, engage in one of your hobbies that will keep you busy.
Ensure you pay off your credit card
Timely monthly payments can mean only one thing; that you won’t be indebted to any credit card company. If possible, pay above the minimum payment required and use your credit card wisely. Keep your credit balances as low as possible or zero. High interest rates can push you into debt before you know it.
If you were wondering how you can get out of debt, the above steps can put you on the right road to becoming debt free!