Manage your debt with these seven advice:
1. Live within your means
Meet the golden rule: Don’t spend more money than you earn. And overdraft is not part of living within your means.
2. Balance transfer to reduce costs
If you’re carrying balances at high interest rates, do a balance transfer to a less expensive form of credit.
3. Pay more than the minimum
Making minimum payments each month will keep you in debt for what seems like forever. You must pay more than the minimum to dig yourself out of debt.
4. Automate your savings
Paycheques can disappear all too easily, so put some cash away before you have a chance to spend. Arrange an automatic debit from your main bank account to a savings account.
5. Create an emergency fund
And emergency means emergency. It’s not a new pair of shoes you like or a weekend shopping spree. It’s a layoff, sickness, or some other unexpected event that strains your finances.
6. Check your credit history
Regularly check your credit history (at least once a year) with your bank or a financial institution.
7. Start a savings jar
If you save P500 by shopping smart and then spend that P500 on something else, you haven’t saved anything. Each time you use a coupon or save by buying on sale, take your savings and add to your savings jar. Each time you get to P500, move it to your emergency fund, retirement savings, or education savings.
1. Live within your means
Meet the golden rule: Don’t spend more money than you earn. And overdraft is not part of living within your means.
2. Balance transfer to reduce costs
If you’re carrying balances at high interest rates, do a balance transfer to a less expensive form of credit.
3. Pay more than the minimum
Making minimum payments each month will keep you in debt for what seems like forever. You must pay more than the minimum to dig yourself out of debt.
4. Automate your savings
Paycheques can disappear all too easily, so put some cash away before you have a chance to spend. Arrange an automatic debit from your main bank account to a savings account.
5. Create an emergency fund
And emergency means emergency. It’s not a new pair of shoes you like or a weekend shopping spree. It’s a layoff, sickness, or some other unexpected event that strains your finances.
6. Check your credit history
Regularly check your credit history (at least once a year) with your bank or a financial institution.
7. Start a savings jar
If you save P500 by shopping smart and then spend that P500 on something else, you haven’t saved anything. Each time you use a coupon or save by buying on sale, take your savings and add to your savings jar. Each time you get to P500, move it to your emergency fund, retirement savings, or education savings.
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