Debt Help - How To Stay Out Of Debt

There are literally millions of people in need of debt help right now. Personal debt is on the rise all the time as credit cards, store cards and loans are used to take the financial strain. The problem with this kind of spending is that it will soon start adding to the strain rather than relieving it. Debt problems can easily escalate and insolvency and bankruptcy rear their ugly heads. But it doesn't have to be this way. There are simple steps you can take to make sure you stay out of serious debt. Sure, it might mean sacrifices along the way, but no-one said it was going to be easy, and the alternative is much worse. Here is a short guide to keep you on the right path: Economise It sounds obvious that making cutbacks will help you to stay out of debt but there are so many people who would rather borrow and get into further debt than accept the obvious. Being absolutely honest, sit down and work out how much you are spending each month, making sure you include everything. Then compare and contrast with your income. If there is more in the 'out' column than the 'in' column then you have to get the figures to at least match - that means cutting out all the unnecessary expenditure. Once you have got both columns to match, make sure you stick to your budget each month. Don't play with the figures or kid yourself you can borrow from next month's budget. Credit Cards Do you trust yourself with the plastic? Are you sure you won't overspend? If not, steer clear of credit cards and store cards. If you can trust yourself, you must choose your credit card wisely. Make sure you find the most competitive interest rate and don't just go for the first offer you find or trust the big names to have the best deals. Try searching the internet as there are many sites offering comparisons. Of course, the smartest way to use a credit card is to pay off the balance each month so you pay as little interest as possible. But if you can't do this, still try to pay as much as you can because just meeting the minimum payments every month won't get you very far when it comes to clearing the debt. Also be prepared to switch cards regularly to make the most of lower interest rates. Take advantage of very low introductory interest rates and change cards once the limited period runs out. Be Strong You have to be prepared to resist temptation. You should make a vow to spend only what you can afford. If you want to make big purchases, save for them rather than borrow. Also, don't pile up the credit cards. Stick to just one and don't get tempted by store cards and their excessive interest rates. Get Professional Help Most importantly, if you run into trouble, get professional debt help. The sooner you admit to the problem and seek advice, the better. A reputable organisation will offer debt counselling for free so you shouldn't have to worry about added expense and more debt.