Articles
Living Without
Debtby Richard Mallenar
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The average consumer carries about $6,000 of credit card
debt. It's not that anyone plans to stay in debt by using a
credit card over and over. It's just that paying with
plastic is so much easier, and more fun, than shelling out
those bills and coins. Still, if you want to avoid paying
high rates of interest for this privilege and you want to
get or stay debt-free, you will probably have to take a few
proactive steps to escape this spending pitfall.
1. First and perhaps most importantly, chop those credit
cards to pieces. Stop asking for, accepting, and using
your plastic to buy things. The word "no" is very much
your friend in the world of credit cards so say it anytime
you are offered another. Ten or more credit cards is how
many the average consumer has in their possession. You may
need to use them for business or vacation but you can
minimize its potential temptation by stashing away in some
hard-to-access location making it more difficult to succumb
to the temptation that is impulse buying.
2. Debt balances are your enemy. Pay the maximum that you
can reasonably afford on your smallest balance, being
certain to exceed the minimum payment amount, until it is
totally paid off. Using the same payment amount, apply
this to the minimum payment figure for the next highest
balance until it, too, is paid off. Using this same
premise, continue the process until you have all your cards
paid off.
3. Learn to live on a budget. Make a monthly budget that
lines up with household income. Include a short-term
emergency fund for unexpected needs like a car repair, and
add a long-term savings plan. Use cash for purchases beyond
monthly mortgage and bills. That way, you will be inclined
to spend less at the grocery store or wherever you shop
than if you were dependent on credit cards.
4. Stop buying needless items. Force yourself to wait 24 hours
before making any purchase over $100. Work with, not
against, your spouse to stay within budgetary guidelines
and limits. As you pay off debt and build wealth, you can
take pride in the fact that you are master of your fate
instead of a slave to debt. Train your children in
principles like these so they can pass along a debt-free
lifestyle to their children. You will love the freedom of
paying cash for the things you need. Soon you will be able
to likewise afford the things you want.
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Richard Mallenar is a consultant and advisor at
DS Debt, Corp. Your
Internet website resource about Debt. Find out more at
http://www.dsdebt.com.
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