There used to be a time when borrowing was considered to be a sin and it was treated as a Crime to delay payment.
Now, thanks to changing value systems and the Modern economy, if you do not borrow, you are not recognised and we are now used to a Lifestyle of wanting more than what we earn and in some cases what we deserve.
No point in suggesting people the safest and carefree Life is Not to Borrow.
Since there are no takers, the next option is to find out How To Borrow Intelligently.
- ‘As any smart borrower could tell you, it’s important to read the fine print when it comes to lenders. Sure, that balance transfer may sound appealing now, but what happens in 6 months when the interest rates sky rocket? Credit card companies are notorious for hiding their little tricks in the fine print so pull at the magnifying glass if necessary.
- Even if you choose to consolidate debt and borrow more, always make more than the minimum required payments. By consolidating your debt, you may be eligible for lower monthly payments, but they won’t help you get your debt paid off any faster. Smart borrowers even go so far as to pay off their entire balance each month.
- Do you only have one or two credit cards? Do yourself a favor and keep it that way. Trying to juggle too many lines of credit is the opposite of smart borrowing. It’s simply too difficult to keep track of a dozen different credit cards, with their different due dates and minimum monthly payments. It’s almost inevitable that those who have too many credit options end up putting themselves in debt.
- If you’re planning on taking out a new credit card or any type of line of credit, do your homework to find the best possible interest rate. By now, everyone should know how important their interest rates are. In essence, they represent the cost of borrowing money and if you get stuck with a high rate, you’ll end up paying a lot more over time.
- No matter how much debt you’ve accumulated or how much you still need to borrow, saving money is always important. While repaying borrowed money is probably your number one priority, do not neglect your savings. You just never know when something could happen, such as a car accident or hospital visit, that could require you to break out the savings.
- Finally, don’t fall for the idea that declaring bankruptcy will be an easy fix to your debt problems. While bankruptcy may be able to help some people in the right situation, it can be a disaster for many. Declaring bankruptcy will absolutely ruin your credit score for the next several years and making borrowing more money all but impossible.’
Tips to Save Money:
- Treat every purchase like it’s a major purchase. You have a few opportunities in life to save a lot of money, but it’s the small daily ones that will make or break you.
- Vacation close to home so you can drive instead of fly.
- Delay big purchases as long as possible. You may lose interest or find an alternate solution.
- Hang dry your laundry, indoors if necessary.
- Choose a hairstyle that does not require frequent trims.
- Repair instead of replace. This goes for appliances, furniture, clothing, whatever.
- Borrow infrequently used tools and supplies instead of buying. (Also make sure to lend.)
- Bank at a credit union instead of a corporate bank. You’ll most likely save on fees.
- Wear the clothes you already own instead of buying new stuff all the time.
- Cook from scratch and save restaurant meals for special occasions.
- Make sure you have a few easy meals on hand for those nights when takeout dinner is calling your name. There’s nothing wrong with serving scrambled eggs and toast for dinner.
- Use your library for books, magazines, movies and CD‘s. And then make sure to return them on time!
- Foster your relationships with like minded friends. They won’t make you feel bad about sticking to a budget.
- Pack your own work and school lunches.
- Replace expensive recipe ingredients with inexpensive options. Perfect example? Kale instead of basil in pesto.
- Don’t be a snob about older electronics. You will survive without the newest iPhone.
- Learn how to mend and de-stain your clothing. If half your wardrobe is out of commission, you’re missing out.
- Batch your errands whenever you drive.
- Drink water or homemade iced tea instead of soda.
- Choose social get togethers that do not include shopping.
- Cancel memberships that you do not use. Gyms, premium cable channels, and everything else.
- Pay attention to your household’s food waste. Eat what you have, and stop buying the food that you tend to waste.
- Be willing to own less stuff. There’s less to buy, organize, clean and look at.
- Wait until movies hit the second run theaters.
- Decline your friends’ shopping parties. You don’t need any more Tupperware, baskets, jewelry or candles.
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