What You Must Know About Staying in the Black
If you are like most people you desire to live a debt free life, but in this day and age that can be very difficult, but not impossible. There are many things that you can do by planning ahead to keep yourself debt free. Continue reading this article if being debt free for life is something you desire.
One of the biggest mistakes Americans make is getting a bunch of credit cards when they go off to college. In reality no one needs more than one credit card to use in case of emergencies. If you do have a credit card be sure to pay it off at each billing cycle to save yourself a great deal on interest and prevent yourself from slowly accumulating debt. Credit cards are notorious for tempting people to buy more than they can afford, but if you use them properly they can actually be beneficial to your credit rating and your budgeting goals.
If you wish to remain debt free it is extremely important that you only purchase things that are within your budget. Of course, it is nearly impossible to purchase a home without a loan, but you should work to pay for everything else with money that you already have. A great tip when it comes to purchasing a car without credit is to purchase a vehicle that is a few years older and still in great condition. With how well they make vehicles these days there is little difference when it comes to the quality of a vehicle that is a few years old. The bonus for you is that the vehicle will cost a large percentage less than it would brand new, making it more reasonable to purchase out right. If you plan to replace another vehicle, always remember to sell it yourself. Trade-in value is considerably less than what you can get directly from the consumer. The same is true for every other major purchase like home remodels, new furniture and electronics. These items are not worth getting into debt over.
The most important thing to do if you want to stay out of debt is to keep a growing savings account. If you run into an emergency of any sort you want to be able to resolve the problem without incurring any interest charges. It will also save you money on your insurance if you are able to pay for small things instead of filing a claim with your insurance company. Even if it is not your fault your insurance rates may increase. Even if you can only put a small amount away at each pay period the money will add up faster than you might think.
As you probably already know, far too many Americans are in a great deal of debt. This does not have to be the case for you. Put the information you found in this article to use and you will find yourself debt free for life.