How likely are you
to get back into debt after completing a debt consolidation plan?
Although debt
consolidation can help you repay your debt, it’s up to you to determine that
your life after debt remains debt free. Life Coaching can provide you with lasting
tools to help you stay on track and manage a spending plan to insure your
success.
Successful Life
After Debt Tip #1 – If you haven’t changed your spending habits, you could find
yourself in need of debt consolidation once again.
You are advised against taking on new credit card debt while you
are participating in a debt consolidation program. Be cautious about taking on
new debt after your program has ended. Many people swear off credit card debt
completely after the program but it’s unrealistic to expect that you will never
use credit or debt again in your lifetime. It’s a better idea to use credit
wisely than to think you will be able to stay away from it altogether.
Successful Life
After Debt Tip #2 – Always make your payments on time.
After building a three- to five-year positive payment history
through debt consolidation, you don’t want to jeopardize it with a single late
payment. Get in the habit of paying your credit card bills well before the due
dates to ensure your payment is processed in a timely manner. Timely
payments will help you maintain your interest rate, reduce the cost of carrying
credit and improve your credit.
Successful Life
After Debt Tip #3 – Start an emergency fund to avoid debt caused by financial
emergencies
That way, you have some savings to fall back on in case of a
financial emergency. Continue to maintain your emergency fund after you have
completed debt consolidation and avoid dipping into it unless it’s truly an
emergency.
The most important thing to remember when you are making new
credit card charges and applying for loans is that you should never take on
more than you can afford to repay. That means if you can only afford to pay
back a $10 credit card balance at the end of the month, then you should only
charge $10 on your credit card. Before you swipe your credit card, assess
whether you will have enough money to pay back the balance.
Successful Life
After Debt Tip #4 – Focus on managing your money wisely
The smarter you are with your money, the less likely it is that
you will resort to credit cards and debt to maintain your life. Good money
management starts with a spending plan. Having a spending plan helps guide your
spending and allows you to recognize any gaps between your income and your expenses.
Seeing your expenses on paper makes it easier to evaluate your expenses and
reduce them if necessary.
Successful Life
After Debt Tip #5 – Staying out of debt will take much self-discipline.
Don’t be afraid to close your credit card
accounts if you are tempted to use them to charge more than you can afford. Although the debt consolidation company
would love to have you back as a customer, it is in your best interest to stay
out of debt.
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