Avoid Buy Now Pay Nothing Till ….
I am sure that all of us have seen these flyers and newspaper advertisements with bold big headings begging you to buy all those big ticketed items now and pay nothing for next 12 months or even 24 months. Well it does feel good to buy all that stuff without paying at that time but the only catch is that if you don’t pay on time, you will be sucked into debt for years. The interest rates on these offers are usually very high and start to accumulate from the day you made that purchase. General rule here should be that don’t buy if you don’t have money to buy. So, it might be good idea to save first and then buy that product.

Change Your Attitude:
Do you remember a time when you had the money to pay your credit card balance and you didn’t pay it on time just because of your laziness or habit? Your this little mistake will cost you extra cash to pay and you may be paying the interest for next two months for all the purchases or cash advances you make using your credit card. Just close your eyes and think for a moment. Is it really worth missing your payment for even a one day when you have money? I am sure your answer will be no. So don’t do it next time and pay your bills on time.

We need to change our attitude towards the debt. If we borrow money, we need to pay it on time or we should avoid borrowing money.

Credit Cards Are Not Bad if Money is Paid Back on Time!
Are credit cards bad or having credit card is like being cursed? The honest answer is NO, credit cards are not bad it is the way we use these cards. I understand that if you have the credit card in your pocket, then you may want to use it for any thing you like and feel urgency to buy. The rule here is curbing that habit of buying things when you don’t have money or you don’t need them. I would not buy anything using my credit card if I have no money to pay that back. If you believe that you can’t do that then you may think of getting rid of all the credit cards and use either debt card or cash only for all your purchases.

In conclusion, debt is not about borrowing money, but managing your money and paying it back on time. There is no problem in borrowing money when you need it as long as you pay it back within the time.

When Debt is Not Bad?
Is it ever possible that debt can be good? People starting businesses, or expanding the business for making more money borrow money all the times. The idea here is to borrow money and use the loan or debt for generating income stream that not only lets the borrower pay the debt but also make some profits. So as long as you are paying back your debt from the money you making by investing the borrowed money.

Is it that simple then why not everyone borrowing money and making good money? Why people are declaring bankruptcy all the time? Don’t just follow other’s foot steps. If you borrow money for business for which you didn’t do any market research or proper planning, the chances are that you will fail in that business. Not only you will loose the business but also you will fall directly into debt hole.

However, on the other hand if you invest into ventures for which you have the passion, know how, and experience, you have higher chances of walking on to the path of success. The key here is not to dream high especially when it comes to business projects you should always measure your pros and cons before starting new projects.

When Debt becomes Ugly?
Let’s say you don’t have money at all to meet your expenses and you keep on borrowing using your credit cards or from some other financial institutions to spend on your day to day living expenditures. You can clearly picture yourself falling deeper and deeper into the debt pit. The deeper you are into debt, uglier the things will become for your.

This was an extreme case. Now let’s consider a scenario where you do have money in your account and you can have a decent living from your income sources. Some how you are pressurized socially to make big ticket purchases which you don’t even need or you don’t have the money to spend on. An example could be that one of your neighbors bought a new trendy car and you felt the urge to purchase the similar car which is beyond your means. Soon you will be deep into the debt. However, if you save money first and then buy the car or find a deal where your monthly payment is never going to be more than what you earn, there should be no problem.

The key here is to carefully judge your financial means and manage your income so that you stay out of debt. Remember that even though you don’t have a posh car or a luxurious lifestyle, as long as you are not broke and stuck in the debt pit, people will still respect you the way you are. Imagine if you are broke just because you made financial mistakes of spending money on things which were beyond your means, will people still respect you?

Now that we have understanding of the fact that debt can be ugly but if we use the debt for carefully judged investment, the same debt can be the best thing you may ever have. In part-2, I will talk about some steps you can use to avoid bad debt.

1. First of all we need to make a budget for our shopping. Lets say we want to spend $100 today. go to bank and withdraw $100 cash from bank account.
2. Before leaving for shopping, remove all the credit cards or debit cards from wallet and leave these at home.
3. Use cash during the shopping and if you don’t have enough money to buy something, then consider other options which you can afford to buy.

So that was as easy as 1 2 3…. I am sure you will not ever spend over budget this way. That will keep you debt free for the rest of the days.

The number of home defaults from sub-prime mortgages continues to increase steadily. Mortgage resets have not peaked yet.

When it comes to managing personal finances, many people find they are spending more than they earn. Consumers can eliminate debt and create more cash flow by following these tips for becoming debt-free. 

1. Track and analyze spending. Keep all receipts for cash, debit, and credit card purchases. Record expenditures and review spending patterns. Become aware of where your hard-earned money goes so you know what spending habits need to be changed.
2. Make a realistic spending plan. To keep costs lower than your income, weigh true needs vs. wants, and spend accordingly. As a family, prioritize and justify household spending. Look at discretionary expenses like entertainment, recreation, and vacations. How much money can be saved by eating out less often? Look at transportation expenses. If auto payments are taking a big bite out of the spending plan, are there ways these can be cut back or eliminated? Take a closer look at overall family spending patterns. What expenses can be cut back? Begin to make spending changes.
3. Create an emergency fund. The average American saves less than a dollar of every $100 earned. Find workable ways to set aside funds every payday for unexpected expenses. Costs for car and home repairs or health problems can quickly break an already tight budget. When an unexpected bill comes your way, be prepared financially. Instead of charging unexpected bills on your credit card, dip into your emergency fund.
4. Pay outstanding debts on time. Establish a bill-paying routine so bills are paid efficiently. When credit card payments are late, the result is high late fees. You will find interest rates spiking on the credit cards. And the cycle continues. Late payments  harm your credit score, making it more difficult to get a loan later on.
5. Leave home without the credit cards. Studies show that shoppers spend 33-34% more when they make purchases with credit cards instead of cash (Master your Money). If paying with a plastic card is a habit, pull out your debit card instead.
6. Pay off debts ahead of schedule. List debts and prioritize them. Which ones have the highest interest rates? How many payments are left? Focus efforts on paying off one debt ahead of schedule, then continue onto the next one. Commit to become debt-free, whittling away at credit card balances and loans.
7. Avoid any new debt. Don’t be lured by teaser credit card rates. Avoid department store cards with higher rates. Don’t make financial promises that will be difficult to keep.

Remember that our resources are from God. We can ask God to help us be better and wiser stewards with what He has given us.

If you are in a tough financial situation it is likely that it took several years for you to get there. Don’t expect everything to be resolved in a short time. Plan to take the same amount of time to get out of your money troubles as it took to get into them.

You can speed up the process, however. Decide to pay off what you owe with an aggressive plan. Make a commitment to follow through with it. The more committed you are, the sooner you will see your rewards.

It’s been said that success is “the progressive realization of worthwhile goals.” Focus on the goal of getting out of debt, and one day you will become debt-free. You will reap the many rewards of financial freedom.

You can find a number of debt relief / consolidation services where experienced debt counselors can offer you a FREE consultation by a highly trained Financial Consultant / Counselors that specialize in solving people’s debt and credit problems.  Thereby you become stress free by taking control of your finances, easily and effectively.  
 
Financial Consultant / Counselors program provide you all the information you need to make an educated choice on how to become free from debt and handle the most problematic parts of becoming debt free which are all the annoying creditor calls, money management, handling the monthly statements, administrative tasks, and negotiations with creditors.

Get started now  simply taking your first step into debt free life by contacting Debt Stress Relief and your life will become a whole lot simpler.