We All Love To Be Free Of Debt

Category: Finance, Credit.

We all love to be free of debt. Bank on your decent income and stay debt.

Being free of the burden of debt is liberating. But let me tell you that s not the life for many people. Instead, you can use the money that you aren t paying towards debt to create a fund, to rescue you when something unexpected comes up. $1, 000 is a good amount to start with. Here are some tips for living a credit- free life: Keep a fund for hard times: There are people who use credit cards for emergencies. Pay off Credit Card Debt: Credit card debt is the number one obstacle to getting ahead financially. Use Debit( Debt) Card: Debit card( or Debt Card) is a plastic card, which looks similar to a credit card that consumers may use at ATM or to make purchases, or other types, withdrawals of electronic fund transfers. Despite our good resolves to pay the balance off quickly, the reality is that we often don t, and end up paying far more for things than we would have paid if we had used cash.

In some situations, you may need a credit card to buy something online. If that has the name of a big company, you should not have any problem and would work at every place. Use your debit or debt card here. Don t pay interest, earn it: The interest you pay for your debt or credit eats away at your finances. Instead, make your money work for you by investing it. The problem with debt or credit is that you waste money paying interest.

With the magic of compound interest, your investments will grow over time, meaning that money you would have been paying toward interest is now earning interest instead and multiplying. Do cash purchase of your car: If you have a car debt, what you actually do is you end up paying an amount by which you could have bought two cars over the course of the loan. That s good math. So, get it in cash. Most important is to understand the Rules of the Law. Invest for retirement: No matter what your credit or debt situation is, keep accelerating your retirements.

How? For once, let the law work for you! Know to use the security and help provided by federal law. The objective of the Creditor and debt collection laws( both federal and state) are to stop the abuse and harassment you may face from collection agents and employees of creditors trying to recover debts. Always remember that FDCPA is a federal law that outlines what information debt collectors can collect on you. The section of the Fair Debt Collection Practices Act figures out illegal tactics such as intimidation, profane, filthy, or abusive language and telephone calls, which are resorted to by many creditors to scare you into paying a debt right away.

You need to know about the specific rules on how debt collectors can converse with you at home as well as at work. Follow these tips, and I m sure you really are going to enjoy the charm of debt liberation. These rules are intended to guard you from ill- treatment, false and deceptive, pestering actions and prohibited debt collector strategies.

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