The easiest way to avoid high-pressure phone calls from bill collectors is to avoid having those past due bills in the first place. It’s best (but not always possible) to avoid ever borrowing money at all.
Minimizing your current debt is a more realistic perspective on living your life in the black. Take a few minutes to consider a few helpful tips on how to avoid living your life in debt, and prepare your mind for a “positive” future.
Write out a budget to set realistic boundaries
Living without a budget is financially reckless. No budget suggests that you have no structure to your spending, and your money is randomly dispersed. This method leaves too much room for trouble.
Take the time to create a realistic budget, and augment it for a better fit as you go. Stick to your budget, and make sure you put savings on the list of things to pay out each month.
Try splitting your finances in such a way that 50 percent goes to necessities like housing, 30 percent goes to things you want, and 20 percent is put away for savings.
Be smart when spending your money
When you do spend money, do so in a frugal manner. It’s always helpful to ask yourself if you really need something before spending the money on it.
Teach yourself to do simple things without the need for a professional. If you can fix your own leaks and change your own oil, you’ll save a lot of money over the course of your life.
Design an ongoing savings regimen
Savings needs to be a normal part of your life. You never know when a large expense can sneak up on you, and no amount of care can avoid some issues.
For instance, you could need a functional rhinoplasty to clear up breathing issues that keep you from sleeping soundly. Your kid could fall and break their arm. Whatever the case may be, the price won’t be cheap. You’ll need a financial cushion to live in true financial security.
Credit cards aren’t always bad
You’ve probably heard plenty of warnings urging you to refrain from ever having a credit card, but credit cards aren’t always bad. There is a right way to hold a credit card, and it has nothing to do with the way you use your hands.
If you do get a credit card, consider a secured card. You’ll still build good credit, but you’ll take no risk of running up unmanageable debt. Otherwise, pay your balance in full at the end of every month, and make no exceptions.
Just say “no” to cash advances
Cash advances are bad, no matter how they present themselves. Avoid check advance offers, even if you’re hurting for cash. Avoid cash advances on your credit card too, as you’ll pay a price for the convenience.