How to Stay Debt Free | mumble in the jungle

How to Stay Debt Free

debt free

In an ideal world, money would grow on trees and we would never have to worry about saving up for expensive acquisitions. In reality, life is never like this and unless you are monstrously rich, managing your personal finances in a sensible fashion is not something you can afford to ignore.

The problem most people have is that there are some items they must have. We are not necessarily talking about expensive technology or designer labels. Rather, we are referring to a car, a home, or even the cost of essential medical treatment. All of these things cost money, and if you don’t have enough money to pay up front, you will need to borrow the money. So how can you finance important purchases without falling into debt, and if you do have some level of debt, what is the best way to extricate yourself from that debt?

Live Within Your Means

The best way to avoid debt is to live within your means. However, this is easier said than done and if you need a new car urgently and you don’t have lots of savings squirreled away, you will have no choice but to borrow the money. Despite this, it is always sensible to rein in your spending where possible. So instead of going mad on credit cards and racking up lots of personal loans to pay for expensive holidays and nights out, save up instead.

Sensible Borrowing

When you have no choice but to borrow the money, make sure you borrow sensibly. Interest free credit cards are a debt-free way of spreading the cost of a small to medium sized purchase and if you have an existing credit card balance, move it to an interest free card. There are always plenty of credit card deals available to new customers, so look around for the sweetest offer.

Pay off Debt Fast

Savings are good, but always pay off debt before you grow a savings account. Rather than saving up, pay off credit cards and or settle loans first.

Interest only accumulates on debt when you move out of an interest free period. It is often a good idea to put your monthly household expenditure or travel expenses on a credit card if there are loyalty rewards to be had, but only if you pay off the balance at the end of each month. If you let the balance grow, it will end up costing you a lot of money in interest payments.

Debt Consolidation

Debt is expensive, so if you do have a lot of debt spread out over multiple credit cards and personal loans consolidate your debt into one monthly payment. Of course this might be difficult if you have a bad credit rating, but there are still loans available for people with bad credit, such as those offered by

Only buy what you need and don’t buy when you can borrow. If you are careful, it will be possible to stay debt free. Life doesn’t need to be boring if you don’t have much cash – there is a lot of free fun to be had if you are willing to change your outlook on life.