Debt prevention advice
It is never too late to look at your finances and take some healthy advice to preventing yourself from falling into debt.
Prevention is always better than cure which is why you need to look at things objectively and imagine that you do not own any credit. Ask yourself if you would be willing to save for any item that you wish to purchase. If you do not think that it is worth saving for, it isn't worth getting into debt for. If an unexpected expense arises, make sure that you shop around for the cheapest quote. Before you go shopping, make yourself a list of essential items that you need and do not be tempted to purchase luxuries that catch your eye as you browse from shelf to shelf. Be strict with yourself.
There are primary utility bills that must be paid and failure to do so will lead to further debt and heartache. Rent payments must always be made on time and failure to comply will result in a court order and possibly eviction. If you fall behind with mortgage payments, the lender can apply to court to have you evicted and sell your home. If you fall behind with your energy bills, the supplier is within his rights to have your supply cut off and your phone will also be disconnected if you cannot pay your bill. Non-payment of council tax is a criminal offence and could lead to imprisonment. Failure to pay income tax could lead to bankruptcy. Any court fines have to be paid on time or you could be sent to prison and hire purchase agreements have to be honoured or your goods could be repossessed.
Never ignore your primary debt as this should always take precedence over your other commitments.
Upon agreed regular payments of your major utility bills, you should start to gather your secondary bills together and work out an agreed payment arrangement for each creditor. Secondary debt can consist of credit card companies, catalogue and mail order services, store cards and unsecured loans.
Once an agreement has been made, you must make it a priority to pay all of your outstanding debt on your payday, so as there is no excuse to spend your money on frivolous bits and pieces before your debts are settled. Creditors are happy to receive small regular payments rather than a lump sum at irregular intervals.
Finance News posted on 30/05/2007 15:14:46
|
