Saturday, August 21, 2010

Personal finance tricks to help you keep away from debt

Stay away from debt and your debt issues should be alright for a while. Credit cards, student loans and car loans are all ways individuals get to owing thousands of dollars in debt. Personal finance is available to everyone who has yet to join the crowd and wishes to stay away from debt. The best results are found for personal finance with a couple of key things. Picking what those things are and focusing on them is the hard part. Avoiding debt difficulties could be as simple as becoming more financially literate about credit card debt, saving money and getting wholesale.

How to start debt proof living

Financial literacy can be gained with one very basic thing which is understanding credit card debt and avoiding it. Practical Money Skills talks about the “power of 50.”. If you have a credit card with a $ 3,000 balance at 18 percent APR and pay only the 2 percent minimum monthly payment of $ 60 per month, it will take you 8 years to pay back your card. What’s worse, you will pay $ 5,780, not the $ 3,000 you figured you were spending when. If you can lower the amount left on the credit card faster, say pay $ 50 more a month, or $ 110 a month instead, then the company won’t be able to charge you nearly as much interest. You get to keep $ 1,800 you would have spent on interest, and you also get 3 years less of being indebted.

Small amounts start a savings

Saving money is fairly easy if you try. Saving money for an emergency fund avoids debt if you need something like car repairs. Saving money for something you really want is a good idea since you are able to better appreciate it. Succeed by beginning small, recommends ehow.com. Put $ 20 into your account with each paycheck. You’ll be surprised at how quickly it adds up. Simple things like refilling your water bottle or brewing your own coffee can make a big difference. Add up how much you spend on bottles of water and coffee in a week. You may end up with some more money through it.

Buy wholesale

Buy your stuff at wholesale with wholesale prices and stop using the extra man within the middle. Tips on getting wholesale to save money could be found at essortment.com. Find out which wholesalers in your area allow the general public to use them. Buy wholesale with sample sales. If you have friends who are interior designers, contractors or beauticians who can buy wholesale, offer to buy their lunch if you are able to go with them next time they shop. Shop around for the stuff you need. Sometimes a torn box is the only reason an item is marked down. Just do your research and work just a little, and you’ll be able to find quite great prices.

More on this topic

Practical Money Skills

practicalmoneyskills.com/personalfinance/creditdebt/debt/

Ehow

ehow.com/how_2205105_start-saving-money-have-none.html

Essortment

essortment.com/career/tipsbuyingwh_twqf.htm



No comments: