09:34 18 November 2013
Some people have already found a way to integrate debts into their everyday lives because they now see it as something they cannot do without but I beg to differ. I consider owing too much of debts as a burden and something every other person has to fight seriously against.
Below are 5 good tips to follow, if you don’t want to fall into some common debt traps.
Too many expenses on a house
Even as many people see buying a house as one of their most important plans, it is extremely important that you watch out for the mortgage rate in order not to fall into unnecessary debts that could have been avoided.
Owning too many credit cards
No matter how much you are enticed by shops and credit companies, try as much as possible not to own too many cards. Although owning them affords you the security you need to cover potential emergencies, debts tends to increase as a result of interest rates with each credit card you own.
Standing as a guarantor
You should not just accept to be anybody’s guarantor, especially when you know your source of income is not solid enough to cover up for such person’s loan if things go wrong. Ensure you speak to the borrower to know what he does and how he intends repaying the loan before you agree.
Scrutinizing your budget
Your budget must be well planned no matter the event you are preparing for. A well planned event prevents the purchase of unnecessary items which are not listed in the budget.
Always plan for emergencies
Emergencies come all of a sudden, but that does not stop you from always looking and catering for the possibility of such events. If not well prepared for, one can end up running into multiple streams of debts.
Avoiding these debt traps is a good sign for the future.
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