No one wants to have any financial debt. Unfortunately, there are times wherein we find ourselves pushed to a corner and resort to borrowing money or spending too much credit. The good news is that you can do something about it.
- Do Not Buy Things Which May Potentially Lose Value Using Credit: There is nothing wrong in borrowing money or using credit when you really need to purchase something. However, if you are borrowing money just to buy unnecessary material which may likely depreciate in value in a short period then it will just become a liability. On the other hand, if you are putting money towards investment or starting a business then there is nothing wrong in spending a bit of credit or borrowing a big amount.
- Stick to Your Budget: Discipline yourself in following what you can only afford. Keep yourself from overspending. This does not mean that you should starve yourself but rather, if you are doing the groceries then maybe it would not hurt to keep yourself from buying that junk food for the meantime.
- Learn How To Save: Having a piggy bank at home or depositing money in a bank is one way to keep you from spending too much. This will help you save more money since there are times wherein having convenient access to money can do more financial harm than not. Make sure that you set aside a certain percentage of your salary before you even spend for anything.
Having debt is good if it is directed towards a financial development plan. But if your debt keeps on increasing because you tend to buy more of your wants than your needs then maybe it is about time that you consider making a debt management plan.
Source: http://www.myfinancedepot.com/money-management-tips-to-decrease-debt
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