Monday, December 1, 2003

Debt-Free Strategies

When you want to become debt-free, there are strategies that the pros will recommend that you do. If you ever wanted to be debt free, there's simple ways to get there and stay there. It is a relief to be debt-free and is easier to achieve than you think.

Cash Only

    Whenever you go shopping, try taking cash only with you and leave the credit cards at home. Many people budget better when they know they only have a certain amount of cash and are unable to overspend. Rethink those products you buy. Will you buy name brand when the generic brands will do?

Wait 30 Days Before Making Major Purchases

    Whenever you think of taking a loan or making a major purchase, wait for a month. Think it over during that and determine if you really need it. Ask yourself if you will use it and if you can afford it now or if it's better to wait and get it later. If after a month you still don't know if you really need it or not, put off purchasing it for another month.

Buy Used Whenever Possible

    Most people who are not in debt will tell you that buying a new car is nice, but a used car is usually a better choice. An average of 20 percent of the car's value is gone the moment you drive it off the sales lot, so if you need a car, buying a 2-year-old car will help you save tons of money while giving you a reliable car. It's a car with most of the kinks already worked out, and many are still under warranty for another few years. In addition to cars, this strategy works for purchasing furniture, clothing and computer equipment.

Write Down Everything You Buy

    If you don't already have a budget or track your spending, do it now. By tracking your spending, you'll be less likely to overspend and make impulsive purchases. Knowing exactly how much you have to spend also stops you from having bounced checks and the hefty fees associated with them.

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