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    WATCH: Avoiding Debt At All Costs

    Last updated 2 years ago

    Is it hard for you to treat your credit card as something more than just a piece of plastic that allows you to buy things today and pay for them later? If this describes you, then watch this CBS news clip about somebody who learned the hard way that buying things on credit without the means to pay them off can lead to endless troubles.

    Mary Hunt was a stay-at-home-mom who really liked to shop—until she finally realized she had racked up so much debt that she would never be debt-free if she didn’t change her spending habits. Hear about her story, and the years it took to accumulate and repay $100,000 in credit card. Learn from Mary’s example and avoid unnecessary debt accumulation at all costs.

    How To Avoid Credit Card Debt

    Last updated 2 years ago

    When you use a credit card, you are borrowing money. It may not feel like it, especially if you regularly pay off your credit card balance in full. If you only pay the minimum requirement every month, however, then you could be headed toward financial ruin. Accumulating too much credit-card debt is unpleasant and burdensome in almost every imaginable way. For tips on avoiding credit-card debt entirely, heed the advice set forth in this article.

    Live on 80% of your income. Create a budget that includes all expenditures made, as well as those you intend to make, over the course of the next month. In your budget, don’t forget to incorporate any payments that you make quarterly or annually, such as car registration fees. If monthly spending is less than eighty percent of your monthly income after taxes, then you should be able to avoid credit-card debt by simply living within your budget.

    Set a credit card limit for yourself. Just because you haven’t reached your monthly limit doesn’t necessarily mean you have more money to spend. After you have figured out your budget, set a personal limit for the purchases you make on credit every month and do not allow yourself to exceed it.

    Limit the credit that is extended to you. If you know that you will struggle to stick to your self-imposed credit limit, cut down the number of active credit cards and ask that your credit limit not be automatically increased.

    Pay your credit card balance in full. Settle the balances on your cards every month and on time. This is the surest way to avoid credit-card debt, since credit-card debt most often occurs in the form of interest that accrues when you do not pay off your balance by the end of a grace period.

    Remember, getting into credit-card debt is much easier than getting out of it.  The pain that stems from credit-card debt is not worth the pleasure you derive from the purchases that get you into debt in the first place. Let these important facts of life motivate you to avoid incurring unnecessary debt.

    A Family Guide To Regaining Financial Stability

    Last updated 2 years ago

    If your family has run into financial difficulties, then you know how money problems can strain relationships, negatively affect the family dynamic, and make it unpleasant to spend time at home. If you are looking for a true solution to your family’s financial troubles, and not just a temporary escape from the stresses of financial difficulties, then follow the advice offered in this article.

    Set a family budget. Have everyone in your family track his or her expenditures and sit down for a family meeting to determine which spending habits are unnecessary.  Next, set guidelines that determine how much money each person in the family can spend.

    Make goals together. If your family has multiple debts, decide which should be paid off first and develop a timeline that provides you with motivation for being a debt-free family by a certain date.

    Hold one another accountable. Ask your spouse and your teenagers how well they feel they are maintaining the spending habits that were agreed upon at your family meeting. Provide your family members with encouragement; when goals are exceeded, have a family dinner or some other celebration to honor accomplishments.

    Make insurance a priority. A lot of consumer debt arises from large medical bills or the loss of uninsured items that need to be replaced. Make obtaining homeowner’s insurance, health insurance, and life insurance a priority so that you can minimize the size of most unexpected expenses that come your way.

    Establish a family emergency fund. Once your debt level is under control and you have taken out the appropriate insurance policies, start setting aside some of your income (10% a month is a good starting point) for those unexpected expenditures you will have to make. This way, you will not have to borrow money to pay for them should something go awry.

    If you follow the steps outlined in this article, your family should be able to live a life that is unmarred by the tension and turmoil that arise when financial difficulties are present.

    Debt Resources From Raincross Filing Services

    Last updated 2 years ago

    Are you looking for ways to get out of debt? Do you wonder how to save more money? For tips and information about these topics, visit these helpful resources.

    WATCH: Good Debt vs. Bad Debt

    Last updated 2 years ago

    When people hear the word debt, it more often than not comes with negative connotations. However, most people are unaware that there is actually “good” debt.

    Good debt is debt that will benefit you over time, such as money borrowed to secure an education or a house. These debts can be considered investments. Bad debts are debts accumulated via purchasing items that will depreciate over time, such as cars and furniture. Watch this video to learn more.

    When you begin to assess your debts, differentiating between good and bad debts will help you get a better handle on what you need to start paying off. Settle debts that are hurting you immediately and use remaining assets to improve your financial situation.

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