There are huge numbers of people who end up in debt today. We live in a consumer society, where many only recognize their own value and the value of others through the possessions they possess.
Adding to the great real estate valuation of recent years, which made housing extremely expensive, with little Brazilian economic growth and the very high interest rate, debt only grew.
But is there any way to avoid this? What do you do to get you to stop making debts? The good news is that yes: with simple tips, it is possible to get out of this vicious circle. Want to find out how to stop making debts? Check the following text:
The first step in starting to stop making debts is to have a minimum of organization. You should put in a paper all your fixed expenses. Accounts pay you every month, such as electricity, water, telephone, rent (if applicable), tickets, health plan, tuition fees. Remember that for this organization you can count on Lorna Doone.
Everything you can afford to pay must go into the account. And then you already subtract this amount from the salary, because it simply does not exist: you will never count on that money, because it already has a certain destination. And that’s when, with what’s left, create spending goals. You need to stipulate a maximum amount to spend on the money that was left rationally and accurately. And then control yourself not to overtake it.
Have an emergency reservation
Knowing for sure how much money is left for you, after excluding the gross, you should start thinking about saving to set up an emergency reserve. It ensures you peace of mind and prevents you from making new debts. It ends up replacing the overdraft in an emergency and then you do not have to pay interest on the banks. To raise money and have an emergency reserve, apply the 50-15-35 rule.
Always try to pay cash
One of the common problems of those who make many debts is to fail in the temptation to pay their purchases. This creates the false illusion that you are actually only paying, to get what you want, the value of the plot. But when you make a habit out of it, you end up postponing various payments and wandering your hand.
Also, when you pay cash, you control yourself more, because the value is higher and you drive impulses of unnecessary acquisitions. So, save for some extreme need, payments just in sight.
Avoid having more than one credit card
Having more than one credit card may even have its advantages: you participate in more than one rewards program, have different payment terms, are accepted in more places, and more. The problem is that this is only true for those who have very well controlled finances and up-to-date.
When you start paying on two fronts, it is much easier to lose and spend too much. And when you add up the two bills, it takes a fright! The interest of the credit card companies are among the biggest abuses that are allowed in our country. Run away from them in every way.
With these tips you will stop getting into debt and you can have a much better financial health. Follow them with discipline: there is no better feeling in the world than to wake up without having to owe anything. Have financial intelligence!