When it comes to #financialmatters, Rod Mercado and his hard working team in #FinancialRescue always come to the rescue to help our fellow Filipino-Americans to stay out of debt. And again they’ve successfully helped another client eliminate his debt. But what’s concerning is how the same client can fall back into another unmanageable debt. That’s why Rod shares some useful tips on how to remain #debtfree after a debt settlement program.
If people are serious about getting their finances into great shape, they have to also be serious about not only getting out of debt – but staying out of it by managing debt responsibly through these tips:
1. Make staying out of debt a priority. For anyone who went through a debt settlement program, they understand that there was a plan that was put into place to achieve paying off their debts in a certain timeframe. That same mindset should carry over into their lives once they’ve become debt-free. The same habits and behaviors that caused someone to go into debt, will need to be re-evaluated and changed once they’ve become debt-free. Maybe it means giving up some expensive meals out or curbing shopping habits. Whatever it is, you’ll need to come to terms that if you’re serious about staying out of debt permanently, then you’ll have to make some subtle or even dramatic sacrifices. The real reward comes months or even years later when you begin to see your efforts pay off in the form of more disposable income, increased savings, a better credit score, and more financial freedom.
2. Budget, budget, budget. How can anyone realistically remain debt-free, if they’re not even clear about how much disposable income they have every month? One of the most common mistakes most people make in regards to improving their finances is skipping out on budgeting. A budget gives you a macro-view of your money, and it is the starting point for planning wealth creation.
3. Stop Using Credit Cards. Credit cards are so easy to use, and unless you’re careful and extremely disciplined, you can easily be right back under a mountain of debt. The flip side to this is responsible debt management can slowly lead to an improved credit score. Be honest with yourself; if you struggle with overspending or impulse shopping, then it’s best to put the cards away and just use cash or debit cards until you can manage credit correctly. Don’t fall into the dangerous credit-card-debt-cycle again. And don’t forget to remove your credit card information from any site that you’ve set up online payments, such as subscriptions like Netflix, HBO or shopping portals such as Amazon.
4. Get Excited About New Financial Goals. The money that most people put towards paying down debt in a debt settlement program is now freed up to accomplish wealth-creation goals! This is another place where a budget is so useful. With more disposable income, it would be easy to simply spend the excess money every month. You can allocate that money now towards savings and investments and watch your money grow.
If someone has worked hard to dig themselves out of debt, then they should also work hards to stay out of it! The sacrifice is worth it, and your future will thank you!
Check out https://financialrescuellc.com/ to learn more of their financial services.
“SoRescued” is a segment on So Jannelle in partnership with Financial Rescue providing financial tips and information to help you reduce your debt and achieve your financial goals.
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