Check out the 5 financial tips for the 4th week of January 2012
Tip no 1 – "Shop till you drop" is not the mantra you should follow if you want your credit card debts to drop.
If you want to reduce your credit card debt burden, then you'll have to stop chanting the mantra "shop till you drop". In fact, you'll have to reduce your shopping endeavors. You need to visit your favorite shopping stores for purchasing only the necessary items. Plan your shopping trips in advance so that you know about the items which need to be purchased. You can't afford to waste money on useless shopping. Curtail your luxury expenses by all means, and make it your goal to save money. Use it to pay off your debts.
Tip no 2 - Think local, not global.
You may love to take your family to an exotic island during the holidays. However, this will burn a hole into your pocket. You’ll have to pay a huge amount for the air tickets and hotel bookings. The price of the air tickets is likely to increase in 2012. This means that you'll have to pay more money in this year.
There are various tourist locations around your home town. All you need to do is take out a map and hop on your car. Take your family to these places instead of going abroad, and save money on your vacations.
Tip no 3 - Keep distance from lavish and high-roller friends.
Run away from the friends who lead a lavish lifestyle. If your friends love to frequently purchase new cars, garments, cell phones and other things, then it is better to stay away from them. They may love you as a friend, but hanging out with them may not be good for you. You may get tempted to indulge into unnecessary expenses. This in turn may lead you to debt problems. You'll have to choose between your friends and financial health. If you want to stay financially healthy, then keep away from these friends.
Tip no 4 - Discover savings under your own roof.
You won't have to go to extreme lengths for saving money when you're facing credit crunch. You can save money in your own home by taking some simple steps. For instance, you can lower the temperature of your room heater to reduce electricity bill. Turn off the lights while going somewhere. Purchase groceries in advance. Use CFL bulbs in your room. Purchase items in bulk to get discounts. Use toilet papers instead of facial tissues as they are cheap. Re-use the old items instead of purchasing new ones.
Tip no 5 - Beware of debt consolidation scams if you don't want to end up losing instead of saving.
Debt consolidation is an effective debt repayment instrument. It helps you to become debt free within a certain time period. The debt consolidation industry is soaring since thousands of people are getting entrapped into the debt cycle. There are some genuine companies that offer debt consolidation programs to the cash-strapped debtors. However, there are some fraudulent companies which cheat people in the name of debt consolidation. These companies promise to relieve your debt burden but actually don't do anything. So beware of the debt consolidation scams while consolidating your debts. Work with a company that has been in the industry for at least 5 years.
With proper help you can
- Lower your monthly payments
- Reduce credit card interest rates
- Waive late fees
- Reduce collection calls
- Avoid bankruptcy
- Have only one monthly payment