Millions of people are seeking out ways to avoid debt. We all need a little financial freedom so we can help bring about peace in our lives. Debt is the surest way to create a world of debt. Let’s take a look at how to avoid debt?
Debt can be bought. According to this website, sometimes it is sold at high prices, and the person who buys it may end up in worse debt than he or she started with. The trick is to avoid paying in full but do not expect to keep your payments up-to-date. Let’s see what you can do about it.
Consider having a county government agency negotiate!
If you owe more than the value of your home, you should consider having a county government agency negotiate with your creditors and pay off your credit card bills. This is an excellent way to avoid total default. While there are plenty of advantages to this strategy, there are some downsides. You might have to give up living in the house, and will have to make room for the new agency.
If you are thinking of filing bankruptcy, a credit repair company may be of some help, since they will do the necessary negotiating for you. However, if you are considering bankruptcy, you may also want to start learning to avoid debt. This is because bankruptcy paperwork might be confusing and may take months or years to work its way through the system.
Your credit report can be cleaned up by having no delinquent accounts listed. Also, use the FICO score to check your credit report annually and find out if there are any mistakes that should be corrected. These two simple tips are enough to help you avoid debt and learn to be financially independent.
Don’t spend beyond your means:
Even though you can pay off your credit card bill, once it goes into default, you will be given a lot more work to do in order to get it paid off. Therefore, it makes more sense to pay more than the minimum payment on a card that has a zero balance on it.
Be sure to keep all receipts for purchases and see that they are in writing. This is a legal requirement and will prevent any problems that may occur when your credit is damaged. For example, if you leave your receipt somewhere, then the store owner may try to charge you for something that you didn’t buy.
Another thing to avoid debt is to keep your balances low. Do not accept a large credit card unless it is very necessary.
Before using credit cards, take a look at your credit card statements and write down the amount of credit that you are spending. Not only does this show that you are a responsible consumer, but it also shows how much you can spend. The right amount of credit can be very helpful.
Do not borrow money:
We all want to own things and to enjoy things. However, in the United States today, we are more like pawnshops than anything else. When something comes up that we don’t need, or we are not able to pay for, we simply borrow the money and use it for something else.
Make sure you are aware of the interest rate for the credit cards that you are going to carry. This can make a huge difference when it comes to how to avoid debt.
Try to get at least five different credit cards. Some of them will have better interest rates than others, but you can use these as a hedge against possible defaults. Doing this will help you prevent yourself from trying to be debt-free by simply being credit card debt-free.
If they do not provide the proof then you should move on to another negotiation firm.
If a Debt Settlement Company contacts you about debt relief you should ask them for proof of employment and income. If they do not provide the proof then you should move on to another negotiation firm.
You should also know that there are certain clauses in your contract that eliminate your rights as a consumer if you settle and end up in bankruptcy. The first step to this is when the negotiation firm represents your creditors it should know that you will need debt relief to avoid bankruptcy.
Another issue with debt settlement companies is that they should provide full disclosure of the fees you are being charged and any hidden fees you may be charged. Also, they should not try to convince you to choose a settlement plan without the fees being explained to you.
You should ask a debt settlement company if they will defend you in court if they are sued for making false statements or attempting to defraud you. Also, any other fees they charge that you feel are unfair should be brought up during the negotiation process.
What a consumer is getting when they agree to enter into a Debt Settlement?
The consumer who is willing to learn about what a Debt Settlement Company can do for them should enlist the help of a good consumer advocate. The Consumer Advocate can give you legal advice and may be able to put together a team of three professionals to protect your rights.
The Debt Settlement Company will have a professional representing them, but if they do not have the ability to offer good legal advice then they are not really the “company”. What a consumer is getting when they agree to enter into a Debt Settlement is the promise to represent their interests.
If you are interested in getting out of debt you should look at other options like credit counseling or debt consolidation. You can get a free quote for these alternatives with a professional service.
You can learn more about debt settlement from your local library, your local Chamber of Commerce, and by checking with your state’s Attorney General’s office. You can get basic information and also find out how the Consumer Advocates are working with the debt Settlement Companies.
Kim Marks 