Nobody wants to be in debt. Yet in today’s world of consumerism, it creeps in on us unexpectedly from time to time.
The best advice you will get from people when it comes to avoiding debt is to avoid being in debt. But as you must be aware by now, that it is easier said than done.
Strategies You Can Follow
To help you find an easy solution to end the never-ending cycle of loans, mortgages, and debts, here we have put down some simple-to-follow ways:
- Make a plan for your budget
- Include a To-Do expenditure list in the plan or to put it simply the unavoidable expenditure, for each month
- Chalk out all the unnecessary or frugal spending from the previous month
- Try to avoid them at all costs
- Keep a tab on your credit card(s)
- Set a priority reminder on any pending dues or bills that you need to clear as fast as possible
- Try to avoid taking loans from banks or otherwise, if not essential
- Make a habit of paying the whole amount either in cash or online transfer, instead of indulging in EMIs, monthly payments or other such schemes
- When applying for loans try to stick to those lenders that offer you the lowest interest rates
- It is always better to stick to reliable lenders
- Keep a check on impulse buying
- Always keep a separate account as emergency money. It can come in hand, just in case you need to get out of a sticky debt situation
- Do not invest in shady schemes that offer unrealistic returns
- Lessen the number of cards you keep
- Take the help of available apps that can help you organize and manage your finances better
Even if you find yourself landing in debt despite all the steps you took, you can still remember these few simple things,
- Panicking would not help you
- Try to make a step-by-step plan to figure your way out
- If you have already started the emergency account, see how much of the debt you can clear immediately from that fund.
- Don’t take further loans from anyone to clear your current debt!
Have faith in yourself as surely this too shall pass. Finally, if you need some light-hearted inspiration to help you feel better and to understand that you are not the only one to go through debts, go ahead and watch ” Confessions of a Shopaholic.” If every other method fails, a good movie can surely give you a boost!