Five Good Habits To Avoid Debt

Debts not only take their toll on us economically but also emotionally as they become a source of stress. However, it is possible to live without getting into debt, it is only necessary to make a mentality change that allows us to assume different consumption habits. You can contact Free Debt Help In London

At present, many people have their lives handcuffed because of usurious credits whose “payment facilities” have become high interests that will take them years to pay. In fact, it is estimated that people allocate most of their income to pay debts and urgent expenses that arise each month. However, it is possible to live without getting into debt, it is enough to change the mentality and assume habits that facilitate saving.

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1. Create a cushion for unforeseen expenses

It is likely that throughout the year you will have to face different unforeseen expenses that can shake your economy. In fact, it is estimated that many individuals are forced to resort to a loan to deal with unforeseen events. Therefore, it is better that you plan your monthly expenses so that you can save 15% of your income.

2. Use credit cards less

Many people think that it is convenient to have a credit card to deal with emergencies, but the truth is that these cards are almost never used for this purpose, but are a constant temptation that encourages us to buy products that we really do not need. In fact, you should keep in mind that credit cards are a monthly loan, so if you do not pay off the debt on time, the interest will be activated, and it is generally very high. Therefore, it is better that you avoid using them or that you make sure that you have the money in the account when the time of settlement arrives.

3. Understand the loan mechanism

In fact, not knowing how the loan mechanism works can lead you to contract debts that you would not have assumed otherwise. For example, if an offer says you won’t pay interest for the first six months, that doesn’t mean interest won’t apply later. Many of these offers are designed to encourage people to buy immediately, without considering the expenses they will have later.

4. Shop using your savings

Currently, almost all products and services can be purchased using credit, but the problem with paying with “comfortable terms” is that interest rates are generally very high, so the final price skyrockets. Therefore, a strategy to avoid debt is to save, the old-fashioned way, and buy only when you have the money in hand, or at least a large part of it. In this way you will also value the product or service much more.

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5. Reduce your needs

Savings capacity has diminished as a result of the crisis, so it is important that we rethink our purchasing habits. In fact, it is not necessary to change the mobile every year and if an appliance breaks, you can try to repair it instead of immediately buying a new one. To save and avoid debt, it is essential to change your attitude and understand that you can be happy with much less.

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