subject: 3 Tips to Reduce Debt [print this page] The economic state of the world today is a curious machine. If business's simple goal is to provide goods or services in order to fulfill the needs to desires of another person, I am stumped at how we have gotten to the point where 75% of all people carry so much debt that they are in a position to need a process of debt elimination. Modern day governments and economies have become so convoluted and complicated that debt piles up so easily with few options for people to reduce that debt, that is seems easier for some people to consider bankruptcy than fight for a way to reduce debt Yet, there are ways to reduce debt.
3 tips for you to get a head start to reduce debt
Tip #1 to reduce debt
It's not how much money you make; it's how much you can keep. Its simple math: if there is more money coming in that going out, the more money you will have. It seems like a no-brainer to keep more money than spend, but this is not the reality most people live in. The would be no need to reduce debt if people did not have debt. People get debt by spending more than they have. So, there is only a need to reduce debt when people have debt.
Tip #2 to reduce debt
Use Debit. Debit cards are wonderful things. They are very similar to an ATM card in that when you make a purchase, it takes the money directly out of your bank account, from the money you definitely have. When you use money you have instead of money you don't have, there's no debt and therefore no need for debt elimination. A credit card is a tiny hidden trap because it lets you to BORROW money you don't have then adds on interest. Debt continually adds up each time a credit card is used and only makes itself known in the form of monthly bills. Based on track record, if you have always paid all credit card debt, your credit ratings will get better, leading to "better" protection and concessions given by a credit company or bank.
Tip #3 to reduce debt
Know your bank account. Do a monthly plan-and-review for your savings and expenditure. Those items that you have to buy with your card...how necessary and regular is it? Why is it an investment to you and to other people like your family? What else can be cut down? Sometimes you must realize your financial decisions do impact your immediate loved ones and this is a significant consideration to take care of.
