Unfortunately, and based on studies, people do not deal very well and take debt seriously, this leads to huge bills and debts accumulation and long term interest payments.
Take the following few advices to avoid debts:
– If you have credit card debts, which is in most cases the biggest source and the most serious of debts accumulation especially for students and newly graduates people, you must pay off as quickly as possible to avoid long term debts. Take this advice seriously, because ignoring or delaying any payment can become a nightmare and eat you alive.
– Learn and learn how to calculate interest, this e-book will explain step by step how to perform these calculations.
– ALWAYS check the interest rate. You must ASK first, you must receive clarifications before choosing a credit card. Always assume that you have the lowest interest rates.
– Having multiple cards is like owning multiple weapons and you will risk injuring yourself. Keep one or maximum two credit cards with you. This way you can handle your debts easily
– Educate yourself on how credit cards calculate interest. Then, check the interest rate on your credit cards.
– Know what you want to pay! Never use your card for something you cannot pay for with cash. When you have a checking account and have a debit card, use it. This card is very useful for small items rather then even paying interest for small items. Credit cards make paying money easy. They also make going into debt easy
– Always have a plan to pay back your debts. If you need to buy something, think first “how can I pay it back?”