There are certain times of the year where people are especially prone to buying too much stuff and getting into debt. When you feel like you’re in over your head, it’s a good time to figure out how it happened, how you can get out of debt and, even more importantly, how you can stay out of debt. With a little careful planning, you can avoid those buying binges that keep you buried in bills.
Starting with Your Old Bills
The first trick to staying out of debt is getting out of debt. If you have old bills hanging over your head, you’ll want to get those taken care of first. Starting with the oldest ones, start paying the complete balance. If you have some that are especially expensive with high interest rates, prioritize those as well, to pay them off quickly. If you don’t have the cash on hand to pay the full balance, use your car as security for a car title loan. Depending on the value of your car, that should get you anywhere between $2,600 and $20,000 cash in one hour. Since it’s with reduced interest rates, you can use it to pay your bills that have high rates and save money.
Shopping for New Purchases
Before you head out to the store to buy something, check the prices online. Do some comparison shopping to be sure of getting the best price for your item. Whatever you intend to buy, write it down on a list. Don’t fall into the trap that stores will set for you to get you to buy a bunch of stuff you don’t really need. Stick to your list and buy at the cheapest store.
Stay Away From Credit Card Spending
Whatever you do, don’t start running up your charge cards again! Once you’ve done your comparison shopping, you will know exactly what an item costs. Put that amount of money into your wallet and then go shopping. If you don’t have cash for your purchases, go online to apply for an auto title loan. You’ll get competitive rates by using your car as collateral for a cash advance. And you’ll save a lot of money on interest by paying cash for your new items.
Preparing a Realistic Monthly Budget
Now that you’re out of debt, stay there by carefully tracking your income and spending with a budget. To begin your list, write down every source of income that you can think of. If you can increase your income, that’s even better. You might be able to do this by asking your boss for a raise or by looking for a better job. When you know how much money you have, then you can begin to divide it up to last through the month. Put aside something to go into savings each month to prepare for emergencies. Don’t go over your limit each month and you can stay clearly out of debt.