Tips for Staying Out of Debt and Avoiding Collection Calls
In today's economy, more and more people find themselves in debt. In fact, our Nation finds itself in debt. In the wake of debate over the Nation's debt, and raising the debt ceiling, many are realizing how important it is to stay debt-free. With pay cuts and unemployment rates higher than ever, it has become increasingly easy to pay bills and buy necessities on credit cards. Necessities purchased on credit, in hopes of paying it off in the future, generally leads to the inability to pay bills. This inability leads to those pesky debt collectors calling you at all hours of the day with shady tactics. However, by realizing the risks that come with credit card spending and credit debt, you can stop collection calls by staying out of debt. Here are six tips to help you stay out of debt:
1. Spend Less. The golden rule of staying out of debt is to never buy something unless you are sure you can afford it. Know for a fact that each purchase can be paid off in a time efficient manner. Simply, know your income, know your bills, make a budget and stick to it.
2. Pay Cash. Keeping cash on hand for your everyday purchases can help you keep track of your spending easier than using a debit card. Keep your bill money on your debit card, with a little buffer, and pull the rest out for easy management. When you can see you only have $40 left for the rest of the week, it makes it easier to manage how much you buy. If you don't have the money for it, you probably don't need it.
3. Buy on Sale. Never pay full price. There are so many different places to shop. Every store has different specials. With a little research, consumers never have to pay for anything that is not on sale. Memberships at discount clubs like Sam's Club and BJ's can benefit you if you are buying larger items or need bulk quantities for your family.
4. Pay off Credit Cards. Pay over the minimum and pay monthly to avoid the scam of high interest rates and large balances. If you can, use zero balance credit cards and pay off the debt in the time period allotted for the zero interest period.
5. Ignore Credit Card Offers. Using credit cards can lead to debt and collection calls. Only use credit cards in emergencies. If you are using credit cards to build your credit, pay them off immediately. This will help you avoid interest and from spending more than you have. If you can't pay if off, you probably shouldn't buy it--with the exception of some big ticket items like tables, couches and the like, just be sure you can afford more than the monthly payment. High interest rates on large balances only dig you deeper into debt.
6. Be Realistic. If you don't need it, don't buy it. It doesn't matter if our society deems it attractive or necessary, if you don't need a new cell phone, don't buy one. Instead invest in hobbies, activities or sports that satisfy the desire for something new.
While keeping these tips in mind, and possibly avoiding debt in general, you can avoid debt collections and bill collector harassment. After realizing the risks that come with credit card spending and credit card debt, you can stop collection calls before they start.
1. Spend Less. The golden rule of staying out of debt is to never buy something unless you are sure you can afford it. Know for a fact that each purchase can be paid off in a time efficient manner. Simply, know your income, know your bills, make a budget and stick to it.
2. Pay Cash. Keeping cash on hand for your everyday purchases can help you keep track of your spending easier than using a debit card. Keep your bill money on your debit card, with a little buffer, and pull the rest out for easy management. When you can see you only have $40 left for the rest of the week, it makes it easier to manage how much you buy. If you don't have the money for it, you probably don't need it.
3. Buy on Sale. Never pay full price. There are so many different places to shop. Every store has different specials. With a little research, consumers never have to pay for anything that is not on sale. Memberships at discount clubs like Sam's Club and BJ's can benefit you if you are buying larger items or need bulk quantities for your family.
4. Pay off Credit Cards. Pay over the minimum and pay monthly to avoid the scam of high interest rates and large balances. If you can, use zero balance credit cards and pay off the debt in the time period allotted for the zero interest period.
5. Ignore Credit Card Offers. Using credit cards can lead to debt and collection calls. Only use credit cards in emergencies. If you are using credit cards to build your credit, pay them off immediately. This will help you avoid interest and from spending more than you have. If you can't pay if off, you probably shouldn't buy it--with the exception of some big ticket items like tables, couches and the like, just be sure you can afford more than the monthly payment. High interest rates on large balances only dig you deeper into debt.
6. Be Realistic. If you don't need it, don't buy it. It doesn't matter if our society deems it attractive or necessary, if you don't need a new cell phone, don't buy one. Instead invest in hobbies, activities or sports that satisfy the desire for something new.
While keeping these tips in mind, and possibly avoiding debt in general, you can avoid debt collections and bill collector harassment. After realizing the risks that come with credit card spending and credit card debt, you can stop collection calls before they start.
Source...