How to keep debt at bay?
Although, you might dislike the idea of falling into a debt trap, there might be instances or circumstances that compel you to fall into one. Availing loans is not unnatural or uncommon. In fact, it is quite likely that every other person you come across might have taken out a loan at some point of time or the other.
However, what matters is whether or not you are honest enough to return the money that you have availed when you needed it. And primarily, this is essentially one of the first ways to stay out of a vicious debt cycle and that is to make repayment of the debt well on time.
Aside from that there are few other ways that you can adopt in order to stay away from debt and this is exactly what has been highlighted in the article that follows.
Measures to take for debt avoidance
Check out the following tips that you can help you to stay away from a debt trap-
- Use plastic cards- It is best not to use your plastic cards as much as possible. These plastic cards are traps that compel you to go on a shopping spree and make you an impulsive shopper. If you are using your credit card, it is after all someone else’s money that you are using and you have to return it sooner or later.
- Balance income and expenses –Weigh your income figure and spend accordingly. It is best not to go overboard and put all your fingers in the pie.
- Steer clear of alluring messages from vendors – The ones that love shopping will definitely not miss out on the tempting messages that scream out of kiosks and flyers that say “Buy now only to pay later”. Such alluring messages are a perfect way to attract customers and increase footfall, whether virtual or in brick and mortar stores.
- Compare process and goods – When it comes to buying expensive goods, do your bit of homework. Compare prices, deals, and plans, as there are innumerable vendors out there striving hard to retain customers and get new ones. So, due diligence is the key to smart shopping.
- Carry only the amount you need- Use cash whenever possible and most importantly, just carry along enough cash that you will require for making the purchases that you have already decided upon. In this way, if you have limited cash, you will not go overboard.
- Keep track of purchases – If at all you are using credit card, make sure you keep all the receipts and bills. In the event of any discrepancy (which is so very rampant when you use credit cards), you can produce the same.
- Lower rate of interest – In case you still have to avail loans you can do so but make sure you opt for the loan that attracts lower rate of interest. Just remember, not all lenders are dishonest and most of them operate to cater better to the needs of the customers. But at the end of the day, they are also here to do business. So, if you are availing online loans, check the website of the lender thoroughly.
- Keep EMIs in check- It is best not to go overboard so that you don’t have to juggle too many EMIs simultaneously. It not only leads to a lot of financial stress but most of the times you tend to go haywire with the payments unless you plan out the repayment process judiciously. As such, opt for goods at a time so that you can manage the repayments without hiccups.