Avoiding Debt

Avoiding the Debt Trap
Here are some simple tips that may help you stay out of financial hot water.

  1. Never buy on impulse.

  2. Avoid going to sales.

  3. Set up a family budget and stick to it.

  4. Charge only the items you can afford to pay for now – if you had the cash on you.

  5. Reduce the size of your home, if necessary, to reduce the mortgage or reduce the rent. (Your biggest payment each week.)

  6. Never guarantee someone else’s loan.

  7. If you are in a partnership, make sure you know what the other partners are doing because you will be liable for their debts.

  8. If you have a company, protect yourself from the business debts by forming the company into a limited liability company and not guaranteeing any company loans.

  9. If you are investing, watch out for high-risk investments.

  10. Make changes to your spending habits, so you reduce the number of times a week you go to a restaurant, or instead of having a big family do suggest you have a picnic lunch.

There are many things you can do once you find...

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