Avoiding the Debt Trap
Avoiding debt is a constant on-going battle, not a one off challenge and it is for this reason you need to always be in control and know where your finances are up to. To do this, you need to keep in regular contact with your account (easy now we can access them online) and be fully aware of all payments expected to leave your account. It is when people don't know this information that they end up spending more than they have. To make sure you don't run into any unexpected debt, we've stuck together a quick guide of the key points you need to be constantly aware of.
1) Credit is rarely free. Whilst it might be tempting to go ahead and buy the new television because you don't have to pay anything until 2102 at no extra cost, you will incur that cost somewhere along the line. If you do decide to go for a deal such as the one we so sarcastically suggested, make sure you read the small print with your best readers, and then read it again.
2) You must start budgeting. For some reason, many people run a mile when it is suggested they need to budget, but it really is very simple. A basic budget is a great start and will involve you jotting down all incomings and all outgoings - without leaving anything out. When you've done this, you can easily identify where you can save and where you can spend. The fun doesn't stop once you've created it either - A well maintained budget (regularly updated and reviewed) is the key to lifelong debtfreeness!
3) Charity begins at home. It pains me to write this but not so long ago I was reviewing a friends budget (this friend was heavily in the red by the way) and I was amazed to find that he was spending 100 a month on his charities! I am a charitable person and I contribute on a monthly basis (plus anything in-between) but when you are in so much debt, surely you have to cut this expenditure out, at least temporarily. Yes, there are probable people worse of that you, but look at it this way, the sooner you're back on track, the sooner you can better provide for your causes.
1) Credit is rarely free. Whilst it might be tempting to go ahead and buy the new television because you don't have to pay anything until 2102 at no extra cost, you will incur that cost somewhere along the line. If you do decide to go for a deal such as the one we so sarcastically suggested, make sure you read the small print with your best readers, and then read it again.
2) You must start budgeting. For some reason, many people run a mile when it is suggested they need to budget, but it really is very simple. A basic budget is a great start and will involve you jotting down all incomings and all outgoings - without leaving anything out. When you've done this, you can easily identify where you can save and where you can spend. The fun doesn't stop once you've created it either - A well maintained budget (regularly updated and reviewed) is the key to lifelong debtfreeness!
3) Charity begins at home. It pains me to write this but not so long ago I was reviewing a friends budget (this friend was heavily in the red by the way) and I was amazed to find that he was spending 100 a month on his charities! I am a charitable person and I contribute on a monthly basis (plus anything in-between) but when you are in so much debt, surely you have to cut this expenditure out, at least temporarily. Yes, there are probable people worse of that you, but look at it this way, the sooner you're back on track, the sooner you can better provide for your causes.
