avoid debt

Avoid Getting Into Debt (And A Visit From The Process Server)

Getting into debt can be emotionally devastating for yourself as well as for your family. When a process server arrives at your door to deliver a bankruptcy petition from creditors, you’ll have no choice but to face a costly and stressful court appearance, followed by the possibility of the bank and creditors seizing your personal property and assets. Luckily, there are a number of strategies that you can employ to help you and your family stay out of debt.

Credit Card Debt

If you’ve ever had a credit card, you likely know how easy it can be to overlook how much you are really spending until that bill arrives. While credit cards may be necessary when paying for expensive items like furniture or repairs on your home, using them for everyday purchases can lead to you spending more than you intend to, which can lead to disaster at times when money is tight. If you must use a credit card, look for one with low interest rates and no annual fees. Then, try to pay off more than the minimum if you are able to, to help reduce the amount of interest that you incur.

Christmas Spending Can Lead To Debt

Christmas time in particular is notorious for families spending too much money and incurring large amounts of debt. But the holidays don’t have to cause a strain on your finances, if you simply learn to plan ahead. Set aside money from your pay throughout the year, or consider buying gifts several months before December, to help spread out the costs. Many shops offer to help you pay for expensive items over time with credit, but keep in mind that you may end up paying more for the item than you would if you bought it outright.

Planning ahead is a great strategy for dealing with other major expenses as well. If you know that you’ll need to replace your car in the next year or so, try setting aside some money a little at a time, and give yourself plenty of time to shop around for a good deal. This is a great strategy for any major purchase, from a new home to a new tv, and more.

Build Your Savings Pot

If money is tight, this tip may seem impossible. But if you really break down your finances and examine what you are spending your money on, odds are that you’ll find something that can be cut to allow you to begin setting aside a little money at a time. By building a savings account, no matter how small, you can help to offset the effect that emergency expenses have on your financial situation, which can go a long way towards avoiding debt.

Look for Deals Online

Shopping for a bargain is always a good idea, regardless of what you are purchasing. Plus, the internet has made looking for deals a breeze. Before you make a major purchase, such as new electronics, cars, furniture, or anything else that will set you back an amount of money, do a quick check online to ensure that you are paying the lowest price that you can find. While this may not save you loads of money upfront, if you use this tactic on all of your large purchases, the savings will add up.

Writer’s Bio: Lewis Murawski is the Marketing Director at Kahootz Media. He has been ranking websites on the first page of Google for more than 10 years. Connect with Lewis on LinkedIn.

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