Saturday, July 26, 2014

Down With Debt

A good credit rating can help you get the right job, the right home and the right interest rates on your credit cars, loans, and mortgages. Here are some tips to help you keep your debt in check:

Keep track of every penny you spend during the next month. Categorize your spending into the narrowest categories possible: Movies, dinners out and concerts instead of a broad category like entertainment. Once you see where the money is going, it is easier to budget a realistic spending amount for the future, and to identify areas where you would be comfortable cutting back.

Cancel overdraft protection for your checking account, it makes it too easy to write checks for more money than you have. To get out of credit card debt quickly, pay at least double the minimum payment than you have.

Don’t be fooled by the illusion of security if you have some savings in the bank but almost as much credit card debt. The percentage you’re paying in interest on your card purchases far outweights the scanty earnings on your savings or money market account. Get ahead now by using your savings to pay off those high-interest credit card bills.

Plan to purchase cars or durable goods with cash. Make a plan for everything your family wants to buy and prioritize.