In the current economy of the U.S., we are bound to be under debt at least once in our lives. And one of the leading causes of financial distress is uncontrollable debt. So, to secure your financial position in life it is important to avoid debt problems at all costs. Author and businessman, Ronnie Lee discusses the importance of managing your debt in his latest book, Know Money No Problem (ISBN 978-1952263583). The book serves as a guide for wealth acquisition and management manly for people that earn enough to lead a comfortable life but end up with a shortage of money at the end every month.
Lee learned all that he knows about money management from the financial mistakes his parents made throughout his childhood. It taught him to manage his money smartly and do better for his children.
When it comes to money management, the smartest move a person can make is by avoiding any debt complications. Any kind of debt that is uncontrollable can set your financial goals back to square one. According to Richard Sklar, a Licensed Insolvency Trustee, here are several ways you can avoid problems with your debt:
· Purchase items on sale – if you keep track of the sales on the various stores you shop regularly, this is a good way to buy the items you normally would that are now on sale. Researching the various prices of your most visited stores online, can help you plan your weekly grocery and help you get the most out of your money.
· Avoid Credit Cards – With the credit card(s) you do have, use them wisely and only in an emergency. Avoid building up unnecessary extra debt via your credit card. Avoid signing up for any extra credit cards, and the one(s) that you do have, only use them in an emergency.
Try switching over to a cash-only method. Only spending what you have budgeted from your cash on hand will help with cutting out those unnecessary items in the want list. If you are to use your credit card, charge only what you can afford, and pay off the amount that month so you will avoid any interest. Take note of your credit card grace period, and pay the balance within this timeframe. There’s no point in building up points via your Credit Card if you are paying high interest on an outstanding balance.
· Pay Off Credit Cards – Working to pay off the credit cards is essential. Just paying the base minimum amount each month will not go very far in eliminating your debt. Devising a plan to pay off your Credit Cards so they will be fully paid off should be on your to-do list. Most importantly, do not miss any Credit Card Payments. You can see about creating automatic payments from your bank checking account to your credit card for a certain amount each month so there are no missed payments.
· Avoid using Cash Advances – Avoid the urge to use your credit card for any cash advances. Using your credit card in this manor can lead you to credit card debt. A cash advance with most credit cards is a loan against your line of credit, and with cash advances, it does incur a fee, and if that amount is not paid off within the grace period, interest will start building.
· Avoid Fast Food/Restaurants – One of the easiest ways your monthly expenses can rise on a weekly/monthly basis is eating out at your favorite restaurant. If you visit fast food places a few times a week, and/or take your family to a restaurant on a regular basis. Start calculating how much this is actually costing you on a monthly basis.
· Savings and Emergency Funds – Setting up a savings and an Emergency funds account should be started if you do not already have one. If you have a family, home, pet, or a car, it is easy to guess that some point down the road, you will need some extra money outside of your regular monthly allotted bills to help cover that unexpected bill.
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