Incise The Debt Cocoon: This 2013 Emerge Debt Free With Colorful Wings
By Angela Sanders Thursday, February 07, 2013, 03:49 AM EST
Yes, the New Year is already here, and gifts and blessings are still ushering in; but wait, the festive season is often infamous for its fun, gleam and ability to land you into excessive debt. Now, is it possible to retain the first two characteristics and skip the last one? Keep in mind that the enjoyment phase will soon be over and the frightening credit card bills will soon be lying at your doorstep. Gifts, drinks, parties, merriment - you're filled to your heart's desire, and so are your credit card bills.
Once you've recognized the outcomes of irresponsible credit card usage, it's time to promise yourself that you'll take every necessary step to keep off the debt monster. However, at times situations may get out of hand and you might end up accruing a huge amount of debt. Under such circumstances, a debt consolidation program often proves to be quite helpful.
Yet, as the saying goes - prevention is better than cure. Instead of accumulating a devastating amount of debt and then looking for debt help options, it's advisable to stay cautious and avoid debt altogether. Remember that getting into debt problems is quite simple, but coming out of the debt trap is an equally complicated process. Following are few handy tips to help you remain debt free in 2013.
Trim Your Daily Expenses
The cost of living is on the rise and there's no easy way to escape the huge expenses. However, it's possible for you to maintain a budget and minimize your expenses. Try to adopt a frugal lifestyle. Make little sacrifices on needless expenses, for example that cup of superfluous Starbucks coffee. Instead, try preparing coffee at home or carry a pouch of ready-to-make coffee to your workplace. Moreover, avoid eating out. On the contrary, carry lunch to office or cook your meal at home. It's not only economical, but also healthy.
Slash Your Travel Expenses
Vacation is essential, but if you travel more frequently, it cause serious debt problems for you. Times are tough and therefore, allow outings to take a backseat in your priority list. However, this does not mean that have to cut out travel entirely. Short breaks are essential - particularly for those who need to do a lot of brainwork like artists and writers; this will help them to wind down and relax. Opt for low-priced trips, for example, a long beach drive or may be a night stay at a bungalow that a friend owns. Again, if a close friend makes an offer to treat you on a holiday binge, just seize the golden opportunity. More luxurious trips can wait next year or in case you're fortunate, you may do so once you have divested yourself of your debt problems. In the meantime, you can also save money for your dream holidays.
Have A Proper Spending Plan
Just having money isn't enough; if you fail to have a proper plan for your money, you may end up in a risky financial situation. Well, that's certainly not welcome. A levelheaded plan helps you in having control over how much you splurge and on what. Believe it or not, a proper business plan provides you with a more affluent financial life.
Avoid Co-signing A Loan
There are ample chances to make a mess of your own finances. Why would you be a part of someone else's financial affairs? If a professional lender didn't approve a particular loan, there must be some reason behind it. You can always lend your emotional back-up and support, but not any kind of access to your credit.
Strict No-No To Payday Loans
Times are tough and it's quite natural for you to confront a situation where you'll need funds to meet the massive expenses. Although payday loans are almost an instant solution to your emergency fund requirements, the truth is that, this initiates a nasty cycle of ever-increasing bills, interest and charges. Thus, try to stay away from payday loan sharks; instead, work part time, borrow from a friend, or try to negotiate with your lenders.
Leading a debt free life has its own benefits. With little or nominal debt amount, you can considerably boost your personal savings, and if ever you experience financial hardship due to job loss or any other setback, the possibilities of being hassled by collection agencies or losing personal belongings to foreclosure are considerably low.For more information on debt you can visit here: http://www.debtconsolidationcare.com/debt-free.html