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Many companies nowadays make it so easy and convenient for people to borrow money.
When we go to the mall, we always see promos stating:
0% interest installment rates.
Buy now, pay later!
But the truth is ALL DEBTS NEED TO BE PAID WITH INTEREST.
According to J. Reuben Clark,
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Debts can turn into a disease. It could control our life, kills our happiness, and limits our freedom.
• Do you have debts?
• Is debt good or bad?
• Should we get into debts?
The good news is not all debts are bad. We have good amd bad debts.
Good debts are those that have a potential return on our money.
Take for example the debts to finance a business or your child's education.
Bad debts on the other hand are like credit cards debts, loans that have no potential return.
For example you borrowed money to buy a high end gadget for your personal use even of you still have one.
Getting out of debt may be one of the hardest thing to do. As what they say, once you taste it you would always want it. It takes a lot of time and self control. But you must persevere. You can never be free until you are debt free.
The first thing to do to manage debt is:
Live below your means. Don't spend more than you make.
As simple as that. There must have an extra self-control.
Here are a few tips to manage your debts.
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✔ Pay off your credit card debts in full and on time to avoid incur charges.
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✔ Use cash or debit cards. If you have 5 credit cards, cut up the 3 cards and retain only eith one or two cards. And of course use this for convenience purposes.
✔ Spend on necessities, not luxury. Buy only what is important. Change the habit of spending to the habit of saving.
✔ Make a list of all your debts and pay them off one at a time.
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