Hi! JJ Childers here. In today’s episode of the Monday Morning Mentor, I’ll be discussing more Money Saving Strategies. The first all-important rule in saving money that you should always remember is: You must definitely NOT buy consumer goods on credit!
Now, I’m not telling you to avoid using credit altogether. Sometimes it makes good sense to use credit. The challenge however is that many people use credit to buy things that they don’t need and that don’t benefit them.
Believe or not, according to the most recent study by the Federal Reserve, 43% of American families spend more than they earn every year. It’s no surprise that personal bankruptcies have doubled in the past decade, topping almost two million cases last year, according to the U. S. Bankruptcy Courts.
To avoid this trap, you should remember this very simple technique: All you have to do is to simply pay more than the required minimum of 2% of the loan balance on credit cards. Just pay 10% to 15% or even more if you could afford it of the loan balance to shorten the payment period and reduce the interest charges.
Make sure that you are giving first priority to paying off your highest interest debt. If your debts seem overwhelming, don’t hesitate to ask for professional help. Credit counselors in your area can assist you in negotiating with your creditors in restructuring your debt.
However, be careful when you work with others on your finances. The way to make sure that you’re making wise decisions is to increase your knowledge level in these areas. That’s why we’re here and that’s why we’ll keep providing you with more tips each week!
