7 TIPS FOR
STAYING OUT OF
Live by these rules if you don’t
want to be ruled by debt!
1. DON’T SPEND MORE THAN YOU
Learn how to live within (and even below) your means. The
quickest way to fall into debt is to use credit cards and to spend
money you don’t have. The sooner you learn how to stay within a
budget, the better off your wallet will be.
2. STOP EXPENSIVE
What little treats do you indulge on once (or twice, or three times)
a week? Is it coffee, fancy desserts, or books? Whatever it is,
stop. You can save so much money by giving up expensive little
habits. ONCE in a while, it’s ok to indulge, but not twice a week.
3. MAKE YOUR USED CAR LAST
The longer you hold onto your used car, the lower your
transportation costs will be. Remember that having the fanciest
car on the block will only drive you (no pun intended) further into
4. WAIT FOR A SALE.
If there’s a clothing item or a pair of shoes that you’re dying to
have but can’t afford, be patient. Chances are it will go on sale in
a week or two. Waiting for something to go on sale will help you
practice patience and thriftiness, and you’ll be proud of yourself,
5. TRACK YOUR SPENDING.
When you track your spending,
you open your own eyes to
what’s being spent on needs vs.
wants. Always spend money on
your needs first. If you have
money left over, use that money
Are there other expenses you’re
not thinking about? Are you
building up your savings? Ask
yourself these questions before
making a trip to the mall.
6. SHOP FOR INSURANCE.
You may be paying more for your insurance than you need to.
Gather all your policies and shop around for the same coverage
at difference companies. If you have a clean driving record, see if
you can find discounts. A lower monthly insurance bill can save
you quite a bit.
7. MAKE SAVING A PRIORITY.
As soon as you get your paycheck, put at least 10 percent of it
into savings. Set up an automatic transfer from your checking to
your savings so that you don’t miss what you never had. Building
up your savings account will give you the financial cushion you
need for emergencies.
WHY STAY OUT OF DEBT?
Once you get into debt, it’s very hard to get out of debt, especially
if you don’t make enough money to pay it off. Staying out of debt
will keep you feeling financially secure and free. It will also keep
you from having to file for bankruptcy.
When you file for bankruptcy, you make it a legal status that you
cannot repay the debts you owe to your creditors, as you will read
in any bankruptcy book. All of your assets will then be measured
and evaluated to see if they can be used to repay a portion of
your outstanding debt.
HIRE A BANKRUPTCY ATTORNEY
If you ever get to the point where you’re drowning in debt, call a
bankruptcy attorney. A bankruptcy attorney like JMM Legal will
help you through the bankruptcy process so that you know
whether to file for Chapter 7 or Chapter 13 bankruptcy.
They will also help you understand the truth behind bankruptcy
myths so that you’re not afraid or worried about the whole
process. If you’re thinking about filing for bankruptcy, contact JMM
Legal today by calling (801) 505-9679 or by visiting
jmmlegal.com. You can also visit their blog for more information.