Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
UK Housing Market Analysis, Trend Forecast 2022 to 2025 - Part 2 - 30th June 22
Stock Market Turning the Screws - 30th June 22
How to Ignore Stocks (and why you should) - 30th June 22
Top Tips For Getting The Correct Insurance Option For Your Needs - 30th June 22
Central Banks Plan To Buy More Gold In 2022 - 30th June 22
AI Tech Stock PORTFOLIO NAME OF THE GAME - 29th June 22
Rebounding Crude Oil Gets Far Away from the Bearish Side - 29th June 22
UK House Prices - Lets Get Jiggy With UK INTEREST RATES - 28th June 22
GOLD STOCKS ARE WORSE THAN GOLD - 28th June 22
This “Bizarre” Chart is Wrecking the Stock Market - 28th June 22
Recession Question Answered - 28th June 22
Technical Analysis: Why You Should Expect a Popularity Surge - 28th June 22
Have US Bonds Bottomed? - 27th June 22
Gold Junior Miners: A Bearish Push Is Coming to Move Them Lower - 27th June 22
Stock Market Watching Out - 27th June 22
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22

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.


© 2005-2019 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