Friday, August 20, 2010

Personal finance tricks to help you avoid debt

Avoiding debt is going to be your best change when dealing with debt troubles. Debt is piled high for many with all of the student loans, credit cards and car loans taken out. You are able to change now if you have not been one to mess up your personal finance already. Just a few things can very much help someone with personal finance issues. Figure out what those things are and focus to them. Just being more financially literate about credit card debt, saving money and purchasing wholesale can get you out of debt problems.

Starting debt proof living

Financial literacy could be gained with one very basic thing which is understanding credit card debt and avoiding it. Practical Money Skills explains what the “power of 50″ is. Eight years will be required to pay off a card that has a $ 3,000 balance with 18 percent APR which only required a 2 percent minimum pay of $ 60 a month. What’s worse, you will pay $ 5,780, not the $ 3,000 you figured you were spending when. But if you are able to pay an additional $ 50 per month for a total payment of $ 110 you will pay it faster and leave less money for the credit card company to charge interest on. The result: the debt is gone in 3 years and more than $ 1,800 in interest payments has been saved.

Save with a little at a time

Saving money is easier than you think. An emergency fund should be set aside to conserve money in things like car repairs. You are more likely to enjoy something you’ve bought if you have worked on saving money to get it rather than just swiping a credit card. The best way to succeed, says ehow.com, is to start small and work up. You are able to simply pay $ 20 to savings every time you get paid. You’ll be amazed at how easily it adds up. If you reuse water bottles or make your own coffee, the amount you save might be a big amount. 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.

Purchasing at wholesale to stop with a middle man

Take out the middle man selling you the food by simply getting wholesale. Purchase wholesale and conserve money at essorment.com with its tips. It could be as easy as calling local wholesalers and asking if they allow the general public to shop. Sample sales can really help when you’re trying to get wholesale stuff. Offer your friends who are interior designers, contractors or beauticians some kind of exchange to take you wholesale buying with them next time they go. And always shop around. Even a simple torn box might mean a price markdown. Just do your research and work just a little, and you’ll be able to discover fairly 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



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