Receivables Performance Management | 6 Ways to Avoid Debt
In today’s society, many folks seem to adopt the “spend now, pay later,” policy when it comes to their credit cards. People also take on debt for things like traveling, wardrobe, even disposable pleasures, like dining out.
Banks also have fees for transfer services, they charge high interest rates for keeping a credit card balance, and they also have fees for cash advances and over-drafting, if you ever get in a pinch. All of these variables in addition to many people’s inclination to spend their money as soon as they get it can force a person to go into debt quickly and shockingly easily.
Receivables Performance Management would like to go over some ways that you can avoid debt. A lot of what we do is based around getting people out of what they think are helpless situations. But we also believe in educating those who get sent to collections as well as our readership about ways that they can manage their finances, and ways they can avoid debt.
Here are a few simple ways that you can avoid getting in a financial pinch.
Avoid Cash Advances and Balance Transfers
If you’re transferring funds between banks and you need that money to show up fast, sometimes it can cost upwards of $20 in bank processing fees. If you pay the lowest possible amount (even then it’s around $3 in many cases), you’ll end up having to wait up to 10 days to see that money in your chosen account.
Keep a Rainy Day Savings
It can often seem hard to put money away and leave it alone, but it’s the best way to avoid debt, because you won’t be as vulnerable as you would without one.
Charge Only What You Can Pay off Before the Monthly Cycle Ends
Building your credit can mean treading a fine line. If you charge, make sure you pay off before the end of the month, that way you won’t have to pay interest on it.
Pay Your Bills On Time
If you miss your credit card payments, they will continue to rack up. Same with car, mortgage, etc. You’ll end up paying costly fees as well. Best practice is to pay your bills ahead of time. If you have higher interest rates, try to make more than the minimum monthly payments, too.
Limit Number of Credit Cards
We all know that person who has a dozen credit cards. For some, it can seem unavoidable, and opening credit cards can be addictive as well. It’s best to just have one or very few higher-balance credit cards that you pay your balance in full on every month, or else you risk falling into a debt trap.
We hope some of this helps you in obtaining your financial freedom. Debt can often seem like a crippling situation, and it can create a lot of stress that might appear unmanageable. Receivables Performance Management specializes in getting people out of those situations. We’ll work with both parties involved to make sure that debts get settled easily and pain-free.
Give us a call today if there’s an outstanding debt that you’re tired of thinking about. Over at Receivables Performance Management, we provide an ethical and diverse accounts receivable management.