Not only do you want to become debt free, you will also want to stay debt free in the long term. You will need to adjust your spending habits and only learn to live within your means so that you can get out of debt and stay out of debt.
Here are 5 tips for staying debt free
When you use cash to pay for things it forces you to only spend the money that you have and if you don’t have the cash then you can’t afford it. Credit cards should only be used when you are 100% sure you can pay it back in full each month. If you are not able to control your credit card spending then you should get rid of them.
The Power of Negotiation
You do have the right to negotiate, but not many people are aware of this. You should shop around for the best deals and you will find that prices are competitive. Suppliers will not just match their competitors offers they can better them. So ask for a better deal than what is on offer and see what you can save.
Get Your Free Credit Report
You are allowed to get one free credit report each year. This report will show you how often you have applied for credit, the amount of debt you are in and you will be able to see if there are any mistakes or if there has been any fraudulent activity. Your credit report is useful because you will get a better understanding of your finances and see where you will be able to improve.
Paying Your Creditors
You will need to keep up to date with your monthly payments to creditors, which includes your credit cards, utility bills, store cards and other financial obligations that you may have. If you start to fall behind on these payments, it can be hard to catch up. You should have at least three months of your salary saved for any unforeseen occurrences, emergencies or if you lose your job.
Face Your Debt
If you have uncontrollable debts, then you can’t hide from them in the hopes they will disappear. You need to face your debt and you can seek advice from a debt counsellor. They will be able to help you find the best way to pay off your debt.
In order to be debt free, you will first need to tackle your current debts and become wiser about how you spend your money, like by shopping for deals or determining if you really do need a particular item. Once, you have cleared your debts stick to your budget and continue to be debt free.