7 Tips to live a debt free life

Do we really like to live a life under debt? The answer is No. But as long as the credit card is in our bag we can’t liberate ourselves from the clutches of debt. The credit card acts like a serpent which keeps on tempting us to get thing on credit. After purchasing a luxurious item it gives a temporary satisfaction but it doesn’t last long. And when we are unable to pay the amount it piles as debt. This hampers our credit score and marks a spot on the credit record. And constant default can force us to file for bankruptcy which has a long lasting negative effort on our credit record. The easiest way to release us from debt is to avoid getting things on credit.

Today there are many debt settlement and consolidation companies in US market who offers us to join various debt relief program to get us out of the maze of debt but nobody wants to ruin their life by falling in debt. So if you want to avoid debt then first you have to choose cash-only life style. While others who are still lagging behind would soon choose this life style after a horrid lesson of debt. It is quite possible to pay for you expenditure from your daily income than borrowing money. Discipline and sacrifice is the bottom line to live debt free which means we won’t pay for things we don’t need and haven’t saved for. Here are seven important tips approaches to get us rid of bad debt.

1. Make a Budget: Budgeting is crucial when you are planning to free yourself from debt. If you spend more than you make then don’t expect to cut out debt from your life. Calculate the amount you bring home monthly and accordingly reduce your expenses. Avoid the use of the plastic even if you face a cash crunch.
2. Increase your income: Try to find other sources of income which would help you to pay off your debt on time. Go for part time jobs which would draw some extra money in your pocket. Give a room of your apartment on rent that would pull in money and enable you to pay off your debt.
3. Avoid using credit: Keep your credit card for emergency use. If you want to purchase a luxurious item then try to save the amount and then buy it. Develop a habit of saving, before indulging into any luxury ensure yourself that you have enough money to invest in.
4. Pay cash- To get a new car: Want to buy a car? Are you thinking of buying a car on credit and planning to go for a monthly installment? Keep that lofty idea in the loft! You will never be able to pay on time and then you would be treated as a defaulter. I would rather give you an advice for few years take the public transport and save the money to buy a car. Use cash to get a car than buying on credit.
5. Credit card bills- Quickly pay it off: Payment of the credit card bill with high interest rate is crucial as the soaring interest automatically increases the debt. Paying the minimum amount won’t solve the problem of debt. When one credit bill gets paid then part by part clear your other credit card debt.
6. Try Ebillme: This is a modern form of payment option where the consumer buys online but pays in cash. You will never be asked for social security number, your bank account number and credit card number. It has fraud protection, the products are guaranteed to be best and the buyer’s satisfaction can also be achieved. When you go for this online shopping they don’t ask for payment on credit card so you don’t get into reckless shopping.
7. Future Savings is required: The sole purpose of saving is to have enough money to lead a peaceful life after retirement. All work no play can make anyone feel dull so in order to enjoy the life after retirement you need to invest in some after retirement funds.

To live a debt free life is not at all difficult if you take mature decision before going in for shopping. Always remember get thing which you can afford by cash and save money for the items which are unaffordable. If you get into a habit of using cash you would never burden yourself with debt.