It may be hard to imagine that you can live a good life and remove the financial burden of carrying too much debt. However, it is true. Debt doesn’t have to control your life or limit it. You can gain financial freedom and start enjoying life.
Consolidating Your Debt
Owing out thousands of dollars to several lenders is stressful and can result in many sleepless nights. You may even want to throw in the towel and file for bankruptcy. However, it’s important to keep in mind that bankruptcy stays on your credit report for up to 10 years. That’s a long time to have a bad name. Instead, a better approach is to consolidate your debt. One way to achieve this is to take out a loan from your bank. If that’s not doable, try some of the local loan places Raymondville, TX (or whatever city you are in) has to offer that use different criteria to grant approval.
Ending Self-Reliance on Credit Cards
Credit cards only work for you if you are able to pay them in full for each billing cycle. Otherwise, you carry a balance that comes with interest. In the end, a purchase you make can end up costing two to three times the original sticker price. It’s too easy to pull out a credit card. After all, they are accepted just about everywhere. Unfortunately, you don’t get a true sense of what you’re actually spending and as such buy items, you would not if you needed to use cash. Giving yourself a weekly allowance will allow you to become smart with your money. Put the credit cards away and start using cash. It will change the way you spend money.
A Focus on Now and Your Future
In your late twenties and early thirties, you may not put a lot of emphasis on saving for your retirement. However, now is the time to start your savings. Putting away money in a company or private savings account will accumulate to more than a hundred thousand over the course of 20 or 30 years. Most companies match up to a certain percentage on a 401K, giving you double the amount each week towards retirement. Unfortunately, by your fifties, while not too late, it becomes more difficult to save up enough to enjoy your golden years.
Have Fun for Less
No one says that you can’t have fun during your downtime. However, each weekend doesn’t have to cost all your expendable cash. Doing things like alternating dinner parties with friends, having family game, movie, or craft nights, and checking out the local sights are just a few ways to have fun for less. Use the internet to find deals on eateries, spas, movies, and places in your area.
Your Credit Score
Unbelievably, many people don’t know their credit score. Your credit score is important. A good credit score, one that’s above 680, will allow you to secure a loan with a low interest rate. However, if your credit score is poor (620 or below), you’ll have a much higher interest rate. As a consumer, you are entitled to a free credit score each year. Take advantage of this and make sure to order a copy. This way if you find any errors you can fix them ahead of buying things like a home or a car.
You can go from broke to financially stable. All it takes is a commitment to remain smart with your money and manage it wisely.
