Page 81 - Making It To The End Of The Month

DON’T STRESS IT! | Chapter 8 3. Loans and Credit Cards
Loans and credit cards are a means to borrow money, perhaps to pay for university fees, home renovations or a dream holiday. Whatever the reason, aim to pay off the debt quickly.
Regarding loans: If you have more than one, pay off the one with the largest interest rate first (it might be a credit card, so consider this), then move to the next one. It’s also important not to apply for any more loans until this has been done since it will work against what you’re trying to achieve. However, when a new loan is deemed necessary, make sure you have a plan in place to pay it off.
Regarding credit cards: Don’t use them to buy anything that is not already part of your spending plan. This takes self-control, as explained in chapter seven. And if the use of a credit card is part of your plan, pay off the full balance every month to avoid charges.
Becoming debt free takes time and planning. No one gets into debt overnight, so getting out of it doesn’t happen overnight, either. Even though some people wander aimlessly into debt, it’s not possible to simply walk out of a debt situation.
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