Tips to Help You Avoid Debt, Even With a Small Paycheck
If you don’t make a lot of money, it can be very stressful worrying about how you will be able to pay all of your bills each month. The good news is there are ways to stay out of debt even if you only have a small paycheck to work with. Taking the right steps to manage your money can keep you out of debt and help you have a better financial future.
A lot of people get into debt before they even realize what they are doing. It’s not their intention, but it happens sometimes because people are not mindful of the differences in what they are making versus what they are spending. The following information helps those individuals that may be having issues with debt.
Ask yourself if you really need it –
When you are out shopping there will always be some things that look like a good buy until you actually get these things in your possession. The dress may not fit the way that you thought that it would. The cool shoes may not go with anything that you have. Ask yourself if you really need it before you waste money that could be used for a greater purpose somewhere else.
Don’t charge if you can’t pay the full balance –
It may seem feasible to simply charge it. After all, you have the credit card and you can pay everything back in small increments. You don’t have to get a balance that you cannot pay, though. It is going to be a lot better to only make purchases that you can pay in full at the end of the month. This is a surefire way to avoid debt.
Resist those no interest deals –
There are some credit cards that can really tempt you because there are a lot of promotions like the “no interest for 6 months for new cardholders” deals. This seems almost too good to be true. You get to take home the merchandise and you can pay on it for 6 months without getting charged any interest. This is ideal for emergencies like car repairs if you simply do not have the money to afford it, but it should not be for any nonsense purchases. Don’t abuse a card simply because you are getting a grace period in which no interest is charged.
Start saving for emergencies –
It is important to save for those emergencies. You never know what can come up down the line so it makes sense to avoid excessive credit card charging by saving. You don’t want to get involved in those pay day loans for the temporary fix. The interest that comes with this can make you dependent on these types of stores. You certainly don’t have money to pay back interest if you had to borrow the principal the week before.
It’s not really a great deal if you can’t afford it –
Don’t take away money from one thing that you need to pay for something that you could do without. In other words, prioritize your spending. If you cannot afford the sale it isn’t all that great. Develop a budget and disregard the stores that are advertising the sale of the year. This may be a great way for the store to make money, but it could become something that leads you into debt.
Live within your means –
It can become very tempting to buy new clothes or big tickets items like televisions when you see other people enjoying these things. It can be tempting, but you should also think of the ultimate cost in the long run. Will buying clothes that will be out of style next year really be worth that debt that you are getting into? Will the new car be as much fun to drive if you are barely affording to buy gas for the vehicle? The obvious answer is no so consumers should consider this before they go down the road that leads to this type of debt. If you don’t make enough to handle the monthly expense you should consider cutting some of those frivolous expenses.
A budget can be your financial map –
It can be very beneficial to sit down and make a budget. Write down your paycheck amount and make a list of all your bills. You will also want to make budgets for things such as groceries, gasoline, and other added expenses that occur. Make sure you account for all of your monthly costs. This will also be a great way to show you where you may be overspending. It can be costly if you choose to purchase a coffee every morning, or buy lunch every day. You can learn ways to still have fun while keeping faithful to your budget. This will help you learn how to use your paycheck more effectively, and stay out of debt.
Put away the credit cards –
Whatever you do, don’t use your credit card unless it is an absolute emergency. If you can’t afford to pay it in cash, then don’t buy it. It can be hard when you are trying to keep up with friends and neighbors, but it is far more important for your financial health to stay out of debt than it is to have the newest video game system or designer purse. If you do use your credit card, pay as much as you can every month and pay it on time. High balances and missed payments are a quick way to wreck your credit.
Know your credit score –
It is also important to keep an eye on your credit score information. This can be achieved by utilizing a credit report. It’s important to check your credit regularly with the help of a credit report because debt problems could result in you not qualifying for a loan, or being able to purchase the things you want and need. Checking your credit score information is also important so that you make sure you do not find any inaccuracies. Everyone is able to get a yearly credit report for free, so it is important to take advantage of this option.
Know when to ask for help –
If you are struggling to manage your money on a small paycheck, and you have more money going out than coming in, contact Advantage CCS. We are a non-profit credit counseling service who puts our customers first. You can contact our counselors online, via the telephone, or in person. We can help you work out a budget and a debt management plan to help keep you afloat, despite the size of your paycheck.
Taking the right steps to manage your money can help you stay out of debt. If you make smart money choices, you will be able to afford more financial opportunities such as purchasing a home, or a car. People with better credit and less debt are able to qualify for better financing options and can take advantage of other special deals. Take charge of your finances so that you can have a better financial future.
If you need help getting out of debt, contact Advantage CCS today. The call is completely free and always confidential. We’ll get you started with a budget and list your options for debt relief. A Debt Management Program may work well for you, and you can discuss that option with your certified credit counselor. We’ve been helping people get out of debt since 1968 and we can help you too!