Financial Freedom: Six Tips To Stay Debt-Free

Thursday, February 5, 2015, AM | Leave Comment

It can be challenging to avoid debt, especially during tough economic times. However, there are several methods that you can use to avoid owing creditors. With a little bit of effort, you can ensure that you will not fall into debt.

Financial Freedom: Six Tips To Stay Debt-Free

Here are six tips to stay debt free:

  1. Keep A Close Eye on Your Bank Statements

    Be sure to check your statements regularly for any bills that seem suspicious or unwarranted. Sometimes, people think that they have successfully canceled a monthly payment only to find out later that they have continued to be charged each month. This can quickly add up, and often times you won’t get it back once you realize there is a mistake.

  2. Avoid Compulsive Purchases

    Each purchase that you make should be carefully thought out. Avoid the temptation to make snap decisions. Impulse purchasing can lead to a credit card bill that cause a financial headache later. Consider taking cash with you when shopping so you don’t overspend.

  3. Receive Lump Sum Payments Whenever Possible

    If you have won a structured settlement, or even a lottery, try to get a lump sum instead of having payments disseminated over time. Companies like myLumpsum.com can help you get your money up front.

  4. Live As If You Had Less Income

    Be extremely careful with the money that you have. Instead of spending as much as you feel comfortable, pretend that you make less than you actually do per month, perhaps a quarter less or even half. This will allow you to live well within your means and save more.

  5. Save As Much As Possible

    Even if you only put a little bit aside each month, saving money can add up in the long run. The more you save, the more of a financial cushion you will have. That way, you will have plenty of extra savings if you have unexpected expenses and will not have to depend on credit cards or loans.

  6. Use Cash As Often As You Can

    Using cash for purchases, as opposed to debit or credit cards, is an excellent idea. It can’t be done all of the time, but it can have a positive mental effect. Using cash can give you an extra appreciation for the value of your money. It also keeps you from adding another bill to your credit card statement.

There are many great ways to stay debt free. Living a debt free lifestyle reduces stress and improves your credit rating and credit history. By following these tips, you will significantly increase your chances of continuing to have great financial health.

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