Getting into debt is easy, but getting out of debt is a significantly more difficult task. It is not hard to overspend, live paycheck to paycheck, or rely on credit to make ends meet. When this cycle becomes a daily pattern it is critical to find a solution, before you wind up in financial ruin. Part of this plan is to learn how to say no to taking on debt, and that can be a grueling thing to put in to practice.
Here are some tips you can use in your everyday life that will help you say no to taking on new debts:
- Sleep on it! When considering making a major purchase like a house or a car, take a few days to think it over before you act. Many times if you walk away from the pressure of a salesperson you can think more clearly and make a decision that is more in line with your financial condition.
- Never shop alone. If you take a trusted friend or family member with you when you shop you are more likely to avoid making an impulse purchase, as long as your shopping companion is aware of their role in your shopping excursion.
- Avoid looking at things that are outside of your price range. If you do happen to be in the market for a new car or house, set a budget and then stick to it while shopping. You are in control of these purchases and it is perfectly acceptable to let the salesperson or realtor know your budget.
- Establish a savings account, so when you do need to make a purchase or have a repair to make you do not have to obtain credit or take out a loan to cover the expense.
Andof course the first rule of money management and the key to avoid taking on new debt is to set a monthly budget. Write down all of your expenses and then see how they match up to the amount of money you bring in each month. If your income is not enough to cover what you are spending, start looking for areas where you can cut back. There is bound to be a meal out or night at the movies you can forego, and still have a social life. If not, you should consider exercising other options, like filing for bankruptcy to wipe out the debt that is too hard to pay.
For more information about how to handle overwhelming debt, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.