Stay Out of Debt and Build Your Financial Fortress in 2012

February 18, 2012 by  Filed under: Debt 

The simple four letter word ‘debt’ is enough to ruin your sleep at nights. It can jeopardize your financial and personal life. It can even lead to marital disputes and divorce. This is why it is extremely vital to handle debt with extreme care. Read along to know about some killer tips that may help you stay out of debt trap in 2012.

Tips to stay out of debt and avoid financial hangover

Here are some tips which you can use to stay out of debt in the year 2012.

1. Set some financial goals: Set your own financial goals at the very beginning of the year. For instance: a trip to an exotic Mediterranean island, purchasing your first car, buying your first home, a lavish wedding, etc. Chose those goals which you would love to achieve. This will induce you to save money in your checking account, and stay out of debt.

2. Chalk out a financial plan: Develop a financial plan in the first month of 2012. Once you have come out of the festive mood, create a spending plan for yourself. This will help you know where you’re spending your hard earned dollars. You’ll be able to spend your money on the areas you want. The best part of this tip is that it will help you stay away from debt by controlling your expenses.

3. Embrace frugal lifestyle: It will be impossible for you to achieve your financial goals in the year 2012 by leading a luxurious lifestyle. Live within your means. Spend less than what you earn in every month. Don’t take out new loans. Avoid partying with your friends or colleagues every month. Save money whenever you can, and use them to steer clear of debt problems.

4. Pay your creditors regularly: A smart tip to run away from the debt devil is to make regular bill payments. Make minimum monthly payments every month. On top of that, make some extra payments to reduce the outstanding balances. This way, you’ll never be charged with late fees, penalties, additional interest rates on your loans. You’ll have enough money to spend the whole year in comfort and luxury.

5. Use financial windfalls wisely: If you receive bonus or incentive for your good performance at work, then don’t waste it in organizing a lavish party for your friends. You should rather use it to contribute towards your retirement savings accounts, pay your bills, and build emergency fund. This will help you keep away from debt related problems in the year 2012.

There is a difference between the concept of ‘get out of debt’ and ‘stay out of debt’. The aforementioned tips will help you to stay out of debt in the year 2012. However, if you get into debt even after following the aforesaid tips, then enroll into a bill consolidation program. This program makes your monthly payments on multiple bills affordable. You can just make a single monthly payment on the bills and climb out of debt trap eventually.

Ryan Smith is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. He holds his expertise in the Debt industry and has made significant contribution through his various articles.

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