In the United States, student loan debt has reached an astonishing $1 trillion, and the average American has over $15,000 of credit card debt. Debt has become an all-consuming truth of American life, and yet it does not have to be. There are many ways to protect yourself and your finances, ensuring that credit debt does not claim your life. A few tips for avoiding debt are listed below:
- Do not borrow more than you can afford. If you won’t be able to pay back a loan, then don’t take it out. This may not always be possible, but by following this general rule you can ensure that you never owe more money than you have on hand.
- Pay off your credit card charges every month. Credit cards allow you to make big purchases, but too often they become dangerous. Users lose track of how much they spend, and before long they find themselves deep in a hole of debt. By paying your credit card bill every month, you stay aware of how much you spend and keep your interest rates from going any higher.
- Create a budget and stick to it. By living within a set budget, you are forced to take note of how much you make and spend every month and how you much you can afford to charge as credit.
By following the tips above and keeping track of your finances, you can protect yourself from falling into credit debt. If you do find yourself in credit debt and are unable to pay your creditors, consider hiring a Springfield bankruptcy lawyer to advise you.