» » » » Top 10 ways to prepare yourself from debt Disaster Without Going Broke

If you are one of those suffering from debt-related problems because of never having enough to make timely payments, you are no exception. With millions across the globe suffering from similar financial issues, it comes as no surprise that individuals are more desperate than ever looking for ways to avoid the debt disaster they can sense coming.

Top 10 ways to prepare yourself from debt Disaster Without Going BrokeOften rendering individuals broke, debts are something that can give an individual countless restless days and endless sleepless nights. There are ways you can prepare yourself for the upcoming debacle in case things do not go as planned. While you can always look for a debt settlement program or debt management solutions from companies like Consolidated Credit, often you want to take things in your own hands to guarantee that things get in the swing.

For those seeking DIY alternatives to dodge debt disaster without going broke, the following strategies are known to work wonders.

1. Advance planning is the key to success. Debt disaster occurs because of an individual’s inability to predict expenses. However, in order to ensure that things do not get nasty, one can actually plan ahead for emergencies. Besides making the monthly debt payments, it is strongly advocated that you keep some money aside for medical bills or maintenance costs. This way you can easily take care of everything without having to face any last minute problems.

2. It is never too early to start saving. Debt disasters occur because you do not limit your expenses. Do not assume that the income will be the same always. Some months may be financially tougher than the rest and this is when you can resort to all those savings you thought were unnecessary in the first place.

3. Set up a budget. Split your earnings in two parts, expenses and savings. Try to make sure that your savings part is as big as possible. At the same time, cut down on your expenses and distinguish ‘can-haves’ from the ‘must-haves’.

4. Make use of a financial software. With so many software and apps on the market, it is not difficult to choose one to achieve your financial goals. These comprehensive software and apps address each and every aspect of your financial management and help achieve the desired outcomes.

5. Do not fall prey to desperate measures. Often people get so carried away with the fear of going broke that they do not hesitate to sell each and every valuable on hand. This is a wrong approach. There is no point in selling stocks you think can be sold for a higher price in future. Do not take decisions on an impulse.

6. Track your spending. In order to ensure that you do not go broke in case a debt disaster hits, be astute about where your money is going. Individuals fighting to pay debt claim that they have no idea where their pay went. Keep track of your spending right down to every single penny. This way you will know where it went and this will help you to plan better.

7. Have a source of income and view the money earned as if it’s invisible. Do overtime or take a part-time job and behave as if the additional money does not exist. It should go to savings right away and should not be touched unless you have run out of all the other alternatives.

8. Set smaller goals to pay debts. This will keep you from going broke because if more than half of your income is spent paying for debts, you are bound to be penniless by the end of the month. Make small payments steadily.

9. Another cause that leads to debt disasters is never checking your credit rating history. While it can get pretty dicey to ascertain a good credit rating history, you have no idea how favorable it will be for you. With a good credit score, you are most likely to secure loans on lower interest rates which will prevent you from going broke.

10. Look for a debt settlement program or debt management solutions from reputed companies. These companies have all the expertise to handle your finances and they enlighten you with strategies that ascertain that you do not go broke even if a debt disaster hits.

By following these simple yet effective ways, you will soon be on your way to a debt-free life.

About Denny Jones

Hi there! I am Denny, a personal finance blogger and I love to share tips related to managing finance for a better living. Follow my blog for lots of fresh and exciting tactics to control your finances.
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4 comments:

  1. This is great advice. Planning ahead and keeping a cool mind when problems come your way can save yourself so much trouble. Great post.

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  2. Having a back up plan in case of debt disaster is a marvelous idea! Planning ahead is never a bad idea!

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  3. Any time you're dealing with debt repayment, it's a great idea to work with an experienced money manager to devise a reasonable plan.

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  4. Good tips to follow. When you develop a plan and follow it there is less of a chance you will face a financial disaster.

    ReplyDelete