Life Changing Decisions That Will Keep You Debt Free

Putting yourself in debt and getting yourself out of it both requires some serious decisions. You cannot accomplish it on a come-what-may attitude. You have to think about everything that you will do because it could land you deeper in debt or successfully out of it.

What you need to realize is that you should take charge of your debt because that is your personal responsibility. Despite external factors that seem to have made things worse, it all roots from certain decisions that you made in the past that affected your financial situation today. For instance, not saving in the past forced you to borrow money just so you can afford the sudden expenses required by your broken car.

So to help you keep a debt free life, here are some decisions that you may want to consider implementing.

First of all, you need to make a decision to save. Regardless of your financial condition, this will help you achieve financial freedom - or more specifically debt freedom. When you save, you are putting aside money that can finance unexpected purchases or expenses that you may have to make. These can be repairs for the house, your car or even that medication or treatment that is needed to cure an illness. Your reserve fund can literally save you - in the sense that it will keep you from the need to borrow and thus waste money on interest rates. Not only that, your savings will also help you purchase items or avail of services that would have otherwise forced you to use your credit card. It allows you to keep your luxury expenses without compromising the priority costs on your list.

Speaking or credit cards, this is another decision that you have to work on. Most of the time, people get into trouble with these plastic cards because they do not know how to use them. You need to make smart spending choices and that does not include making purchases on credit. If you cannot control your spending, you need to make a decision to stick to cash purchases. If not, you could rack up a significant credit card debt amount that can spiral out of control if you cannot pay for it immediately. The downside of this is the high interest rate and the many finance charges that can quickly grow your debt balance.

If you stop using credit to pay off your expenses, you may have a fighting chance to be successful in living within your means - which is another decision that you will have to make. For some people, this can mean a complete lifestyle change. If you got yourself in debt, that could mean you are spending more than what you are earning. You need to change this by making sure that you will stick to what your cash inflow can afford. Not only that, you need to remember to live below your means so that you have enough extra for your savings.

There are other decisions that can be as simple as buying that shirt or something more grand like downgrading your living conditions. Whatever decision you have to make, ensure that it will be smart and will keep you from incurring debts at present or in the future.