Is it possible for a person to be free of debt? Being debt-free doesn’t mean being completely devoid of debt. You can have some debt in your credit cards, as well as car and home mortgages. These are normal purchases. You need a home and a car at least. You need to use your credit card for some other important purchases. What will get you into debt is buying unnecessary things that you have no way of paying. Why would you buy an 80-inch television, for example, if you don’t even stay at home and cannot afford it? Why couldn’t you be contented with a 50-inch screen?
Luxurious shopping sprees are going to get you a reputable bankruptcy attorney in Salt Lake City. You’ll find yourself in such a huge debt that you’ll need a lawyer to fix your financial situation for you. It’s going to be hard to rise from that situation. You’ll have a hard time proving yourself to financiers and lenders again.
Do you know what you should do? Never get into debt in the first place. If you’re in the midst of accumulating massive debt, stop right now and read these tips:
Don’t Buy Anything You Cannot Afford
It’s hard to have the tenacity to stop yourself from buying things you want but cannot afford. You have your credit card with you, so why couldn’t you buy that newest smartphone? The question is: can you afford it? Even before you ask yourself if you need this new device, the first consideration would be if you can pay for it. Staying within your spending limits is hard, but with practice, you should get it in no time.
Avoid Credit Card Offers
Your credit card will offer 0% installment rates, as well as that “buy now, pay later” scheme. That’s part of their marketing. It’s up to you to deny them the chance of sucking you into the trap. It feels like you’re getting a great deal, but you’re not. What you’re doing is postponing debt. Can you imagine having a debt waiting for you? That’s what these schemes are. They’re basically money you haven’t earned that needs to pay for purchases you don’t need.
Pay with Cash Whenever Possible
The truth is that you think about big purchases repeatedly. You don’t go to the store and suddenly want to buy the newest smartphone. It’s the small transactions in your credit card that add up. Buying dinner for $20 will be added to the $15 you charged for the previous day’s lunch. Use cash whenever possible. Bring only the cash that you plan to spend on a particular transaction. If you’re going out to lunch, bring $15. That’s enough to buy you a great lunch, but not more than what you should pay if you’re earning $18 per hour.
Choose Your Lenders Wisely
If you have to use your credit card, use only the ones with a low-interest rate. You are not obligated to use every card you have in your wallet. Those are for emergencies. You can treat yourself to a new pair of shoes, why not? But you have to be wise with how you use your credit card. Aside from that, you have to pay off your balance in time. Otherwise, it will accumulate and put you into a huge debt crisis.
There are signs that you’re about to get into a huge debt. Being unable to pay off your balance is a sign that you can’t afford your credit card anymore. If you charge more than you pay, that’s also a sign of a debt crisis. Don’t allow yourself to fall into this trap.