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Simple Ways to Become Debt-Free

September 2, 2020

It takes a long run before you can hit your financial goals, but it only takes a few seconds for someone to get trapped in a pile of debt. Are you looking for ways to improve your financial 3 – 5 years frame rate? Here are helpful ways to improve your finances. Take a look! 

  1. Avoid getting into debt 

Credit.com writer Benjamin Feldman highlights the key factors contributing to credit card misuse which starts from the lack of credit monitoring up to the high interest rates of the credit cards. According to him, credit cards are potentially dangerous especially for new users. First, they make it easier to spend money. Paying cash is painful – consumers feel more comfortable in swiping their credit cards to pay for their purchases. In other words, your credit card removes the anguish you feel when parting with your hard-earned money. That is part of the reason why it can be so easy to get entangled in credit card debt.

  1. Don’t live beyond your means

With a good credit card plan, you have a better idea of how much you are spending and it will help you avoid the pitfalls of poor credit. In an article in USA Today, financial adviser Kelly Trageser writes about the importance of living within your means to avoid financial ruin. Identify what your fixed expenses are, such as gas, food, utilities, and set up a separate budget for discretionary spending such as mall shopping or dining out. Learn to live within your means without feeling deprived.  With a debit card, you can deposit your money into your checking account in real-time and transfer funds from your bank account to your credit card.

  1. Keep track of your spending

Keep tabs on how much and how often you use your debit and credit cards. This means you can record and track your spending more accurately. Try to write down every penny you spend for at least a month or two (that sounds incredibly boring, but it isn’t). 

Check out a few luxuries you can ditch and you’ll be surprised how these secondary expenses add up. Keeping track of your expenses may be difficult work – but that way you’ll improve your financial goals in key ways.

  1. Practice smart spending 

In this article from DailyFinance, author Gerri Detweiler has come up with some of the common strategies for managing debt. ‘Started budgeting’ was listed as the no. 1 strategy by respondents. Although the task of creating a household is as daunting as it may be, consumers seem to be aware that if they want to pay off debt, they better be careful where their money goes. 

  1. Know which cards have the highest interest rates

In this short guide to achieving financial freedom by The Motley Fool, it emphasizes the importance of making consistent payments to get out of debt. Be aggressive when it comes to paying off the worst of your debts, but don’t get so aggressive that you risk missing out on the minimum payments on your mortgage, loans, car, and health insurance. You should consider paying credit cards with the highest interest rates. However, never miss paying off other debts. 

On average, our CGOA financial experts found that the average debt per American household is approximately $5,700. With good financial planning, you can gain a clear picture of your financial situation and enable you to make better financial decisions to achieve your goals.

Looking for debt relief? We can help. Our professional credit counselors will provide you with professional consultation services so you’ll be on your way to becoming debt-free and achieving your financial goals. Call 800-282-8497 or visit CGOA website at https://www.creditguard.org/ for a nonprofit debt counseling session. 

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Fill out the information below and one of our experts will contact you shortly.

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Almost Done!

Just a few more details to get started.

By providing your information, you consent and request to be contacted by CreditGuard and/or our member(s) to your phone, cell phone, email, text/SMS, and through the use of pre-recorded messages and automated dialing technology at the number(s) listed above even if your number provided on the form above is on a State, National or Corporate Do Not Call List. You are not required to purchase any goods and/or services. Standard carrier and messaging rates will apply.

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Also See…

For more information on debt consolidation, please visit:

Why Choose CreditGuard? Learn what sets our debt consolidation services apart from the rest and how we can help you take control of your debt.

The Ultimate Debt Survival Guide. Need some practical advice for dealing with debt? You’ve come to the right place. This free downloadable guide can teach you the basics of managing debt (and more).

Is Debt Settlement a Good Idea? Debt settlement and debt consolidation are not the same. Learn more about the process (and consequences) of settling your debts before going down that path.