Debt is one of the most common problems people face in their lifetimes, it’s also one of the most difficult to deal with, because it can be hard to recognize until it’s already become a problem.
But if you know how to manage your money, you can prevent yourself from falling into debt or at least get out of debt faster than others might.
How To Stop Yourself From Falling Into Debt Again
● Avoiding credit cards
● Emergency funds
● Paying bills on time
Have A Budget
You should have a budget for each month and this means that you will need to include everything that you spend money on, including groceries, entertainment and bills. Try recording your spending for one week or even just one day as an initial step in creating a budget.
If this seems overwhelming, start by writing down all of your expenses from the last month and dividing them into categories such as rent/mortgage payment; utilities electricity/gas; transportation costs ; credit card payments; food costs; clothing purchases.
When creating your monthly budget, Include all sources of income ; salaries earned from multiple jobs in addition to any other sources of cash flow such as investments or lottery winnings
Avoid Credit Cards
Credit cards are dangerous per se by Axis Financial Solutions and they can lead to debt and ruin your credit score, which means it will be difficult for you to get a loan in future.
Credit cards are not a good way to build credit, since they only report transactions on each month’s statement date. If you pay off your entire balance every month, there won’t be much activity on the account at all.
You should avoid using credit cards completely until after establishing an excellent payment history with other types of loans like mortgages or car payments which are reported monthly.
Axis Financial Solutions If avoiding all forms of borrowing isn’t possible for whatever reason maybe because someone else has put too much pressure on you or because these items were given as gifts then make sure that when using them.
The amount paid per month cannot exceed 20% of gross income; otherwise this may lead into serious Financial problems later on when more money needs paying back than what was originally borrowed from banks/lenders.
A Debt Management Strategy: Axis Financial Solutions