Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Tips for Avoiding a Debt Meltdown

Personal_Finance / Debt & Loans Oct 14, 2017 - 02:07 PM GMT

By: Boris_Dzhingarov

Personal_Finance

Debt is difficult to avoid at times. Most of us don’t have a spare $500k to buy a nice home and we can’t often afford to splash out on a new RV without taking out auto finance. But, whilst some debt is unavoidable, far too many people end up sinking into a quagmire of debt they have no chance of escaping.


Credit card debt in the US now surpasses the $1.02 trillion owed on plastic in 2008. This is extremely worrying for many economists, as it indicates the American economy could implode if interest rates rise unexpectedly. Much of this debt relates to auto loans and student finance rather than home loans, which was not the case in 2008, but it is still a big concern.

A Debt Hangover

The biggest problem with debt is that the hangover stays with you for a very long time. Even though you may have paid off your debt and moved on, black marks remain on your credit file and lenders still view you as a high-risk customer. There are a few legitimate credit repair companies out there, which will help, but it’s much better to avoid getting into debt in the first place.

“Credit repair is often mistakenly viewed as some sort of last resort for those who are teetering on the brink of bankruptcy, but that’s not the case," say CreditRepair.com representatives. "In fact, monitoring and repairing credit history is a far smarter and more valuable move for someone who still has the means to take positive steps toward paying off their debt than someone who’s already so far over their head, few other options exist."

Instead, keep a close eye on your credit file and watch out how much personal debt you have. It is very easy to take out credit cards and apply for personal loans these days. In fact, it is downright tempting!

Low-Interest Rates

Interest rates are extremely low and this makes repayments manageable. The problem comes when interest rates rise and inflation kicks in. Suddenly, your pay check doesn’t go as far and you have less disposable income. By the time you are in this position, all it takes is one unexpected bill and you are sunk.

You can avoid getting into too much debt by budgeting for every dime you spend. Don’t spend frivolously. Consider whether you need to spend the money or if you can live without a new car, kitchen, or vacation. If you can’t live without a new car, do you really have to splurge on a new one or would a decent quality used vehicle suffice? Sure, you need a vacation, but why not go camping on the cheap rather than book a luxury resort hotel in Maui?

Work to a Budget

Work out how much disposable income you have and push any spare money into paying off debts first and then into a savings account. Once you have at least three months’ savings, then you can afford to spend a bit on treats. But, don’t make a habit of wasting money. In most cases, we can live without material things!

By Boris Dzhingarov

© 2017 Copyright Boris Dzhingarov - All Rights Reserved
Disclaimer:This is an paid advertorial. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in