Spend Less Money
Levels of consumer debt are at an all time high in the US and the ramifications of this fact are staggering. Personal bankruptcies have become common place. Retirements have been delayed, credit has been ruined, and marriages have ended. There are several contributing factors but the bottom line is that people have resorted to spending more money than they are making, pure and simple. In order for families to regain a sense of financial stability they need to begin to live within their means.
There are countless sources which can give you beneficial advice about how to go about this task in general terms. They will talk about creating budgets and cutting costs and they are absolutely correct. The problem is that many individuals have trouble translating this general advice into practical action. It is our hope that this article will help fill that gap and provide specific practical steps that can be used to lower a family's outflow and reduce its debt.
Here is some practical advice to save money and reduce debt. Use only one credit card at the most since this eliminates the possibility of running up charges on multiple accounts. It may be in the best interest of some to eliminate the use of credit cards all together. Once your cash is gone, your purchases will stop. Never use credit cards that charge an annual fee since there are an endless number of cards to chose from that do not have attached fees.
Always pay off your monthly credit card balance in full and the first month you cannot make your payments, cut up the card and begin using cash. This will help eliminate further accumulation of debt. Always create a list before you go shopping and this works well for grocery shopping or shopping of any kind. When arriving at the store get the items on the list and leave. Browsing around often leads to unnecessary purchases.
Pay off your smallest bill first then take the money you had been spending and contribute it to the next highest bill. This is an effective way for paying down your debt. Purchase term insurance since it is cheaper than whole life. If you are interested in the savings component of whole life, be aware that there are far better investment vehicles that are available. Consider buying a used car since a reliable used vehicle can be much more affordable as well as costing you less on auto insurance.