Recognizing the value of money and finding ways to avoid debt problems before they happen has never been more critical. The best debt advice has always been that prevention is better than the cure. After all, debt interest is a lot higher than savings rates ever will be.
Identifying ways of avoiding debt goes a long way to prevent financial problems ever happening. Sadly, most people don’t appreciate how debt affects a person until a painful recovery plan becomes a necessity.
Avoid Debt by Using the Following Money Saving Strategies
- Always shop around for the best prices. Using online price checkers can help save money and avoid debt. Price checkers work by scanning prices of certain goods and services, helping to identify the most cost effective option. Start by checking that the best deal is being attained on: home insurance, utility bills, personal loans and any savings.
- Avoid debt by settling credit card bills in full each month. Making the minimum interest payment on debt can result in high levels of debt interest as the full balance won’t be settled for about 40 years. Pay as much towards credit card debt as can be afforded.
- Use savings for debt settlement. Debt interest is always higher than savings interest so use savings to pay off debts, especially secured debt.
- Stick to a budget. Spending a monthly wage within a week of being paid leads to financial problems. The overdraft and credit cards will quickly be maxed out leading to high levels of debt interest.
- Get a lodger as a means of avoiding debt. It is possible to earn up to £4,250 each year completely free of tax.
- Get a remortgage. If on Standard Variable Rate (SVR), getting a remortgage can save hundreds. Banks don’t tell customers about this as a customer on SVR is extremely profitable. Take advantage of the current low rates of interest.
- Visit supermarkets half an hour before they close. Supermarkets will discount all short life products shortly before they close. This can mean that real bargains can be picked up for those with financial problems.
- Quit smoking. Giving up smoking can save as much as a hundred pounds every month.
- Cycle to work or use a car pooling scheme. The cost of getting to work is increasing rapidly. Cycling to work or using a car pool can cut transportation bills substantially.
- Sell things that aren’t needed on eBay. Selling items on eBay is an excellent way of reducing clutter. If enough money is raised, this could be used as a full and final debt settlement on a defaulted loan or credit card.
Seek Debt Advice and Pursue Debt Solutions when Financial Problems are Evident
If there are signs that levels of monthly debt interest are starting to increase, seek debt advice to tackle financial problems. A qualified debt advisor will help identify ways on how to avoid debt, seek more efficient means of borrowing and cut unnecessary spending from personal budgets. There are also a range of debt solutions that can be utilised to assist with debt payment.
Taking early steps to avoid debt problems means that debt solutions never need to be used. However, struggling to pay usury rates of debt interest is not always practical for those on low wages, especially if it is affecting personal health. There is always a solution and seeking debt advise can help provide the answer.