Debt pushers are everywhere- they swamp your mail with tempting deals, bombard the billboards with convincing messages- they will promise you the world: top class car loans, lowest mortgage rates, exclusive credit card usage … In a world driven by money and status, what do we do but fall prey to debt? They lead you to believe that this is easy money and oh yes, getting it is easy but paying back? That is another torturous story! To stay in control of and ahead of your expenses you need to be able to resist these sweet deals and here are some of the ways you can stay ahead of your game.
Borrowing is temporary
We tend to forget that borrowing is only meant to fill the holes for a short while- the more you extend the bigger the hole in your pockets will grow.
Picture this: a young boy in the poorest part of the world walks 10 km's to fetch water at the nearest well, what he does not realize is that his bucket has a huge hole at the bottom. Poor thing gets his water and heads back home, once he reaches it, then only does he realize that the bucket is empty and by then, there is nothing he can do. Instead of investing in a new bucket, he walks back to the well with the same bucket and the same thing keeps happening. In the end, he has no water, he is exhausted and thirsty- all his hard work for nothing.
This my friends is what you are doing to yourself by extending your loans- useless isn't it? So before you extend your loan, search your mind, search your soul and see whether or not you will be proud of unnecessarily throwing money out of the window.
Learn to Budget
When making you an offer, debt issuers will present you the most mouth watering deals, just remember that it is a dog eat dog world and what they give you is what will work best for them while work against you.
Once an idea is presented to you, you will see the endless list of things you have been meaning to buy- suddenly; they will become so important that resisting the offer at hand seems to be a seemingly stupid idea. The trick is to know your budget; know exactly what it is you need to buy and do not let debt issuers twist your arm-you will be proud of this decision later.
Keep Count of those Credit Cards
Honestly, the maximum number of credit cards you need is two-the main one and the back up one-beyond that is truly unnecessary. The more cards you have the more you will be tempted to splurge and the more you splurge the deeper the hole gets- it is a vicious circle.
While scouting for the best credit card issuers it is important to consider the rewards and points that card could get you-moreover with the best offer you can save yourself the trouble of having to make all the other grocery, gas and clothing cards because your cards offer you even better deals.
Once you are spending plastic money, the best thing would be to keep up with your payments because credit cards usually have a 13 percent interest rate and that is a mighty expensive way to borrow money. The more timely you are with your payments, the more you save-so do the right thing, avoid debt.
Stick to the good old debit card
With a debit card, you could as easily send your pay check directly to your savings account, with this, you could earn 1 percent interest.
If you think this is peanuts, think again-it is definitely way better than paying 13 percent interest rates on your credit card.
Debt pushers are everywhere and my are they so convincing! So learn how to protect yourself from never ending debt, with a little self control it is easy.