Don’t let furnishing your home or any other purchases rack up a pile of debt. Use these rules to stay out of debt.
Always pay more than is required. Minimum payments are a credit-card company’s way of getting you to carry a single debt almost forever. If you, like the average American family, have $8,000 in card debt at a typical rate of 13.97 percent, and you pay only the minimum 2.2 percent of the balance required each month, it will take you 30 years to retire that debt and cost about $10,000 in interest.
Don’t be late. About 85 percent of issuers punish late payers with penalty rates as high as 30 percent. Some 44 percent will raise your rate even if you pay their bill on time but are late with payments on other cards.
Use debit instead of credit. Debit cards, which draw money out of your checking account when you make a purchase, don’t allow you to overspend as credit cards do. In the scheme of things, this is a huge advantage.
Save something. Even if it is just a little each week or mont and before you’ve completely paid off your debts, set aside some money for the future. Instead of spending any bonuses and tax refunds, put the extra cash into savings — a down payment for future emergencies, so you won’t have to resort to plastic if trouble hits.
Practice patience. Paying down thousands of dollars of debt takes time. Exercise good habits and a little willpower.
You never go into debt with rent to own. And if you rent to own, follow these rules to make sure you RTO in most frugal manner.
Just another ShopRTO personal finance tip.
ShopRTO provides consumers home living and decorating tips and promotes rent to own as a shopping option for affordable home furnishings.