Debt Counseling: 4 Ways to Maintain a Debt-Free Lifestyle

Jeanne McTaggartDebt Consolidation

Debt Counseling

Whether you go on a spending diet or carve out extra time in your day to earn money, debt counseling can help you maintain a debt-free lifestyle. A recent article by Personal Finance Cheat Sheet points out there are countless different methods and strategies for eliminating debt. One of the easiest ways to completely eradicate debt is through a Debt Management Plan that lets you pay off all your creditors with one simple monthly payment. After consolidating debt and automating your monthly payment, you may already feel the heavy weight lifted. You can start living a debt-free lifestyle while enrolled in a Debt Management Plan through a reputable debt counseling agency such as Christian Credit Counselors. A study by the Urban Institute found 35 percent of adults are dealing with debts that have gone to collections. According to Cheat Sheet, it’s important to figure out your weaknesses before choosing a personal finance management plan for yourself. Through debt counseling, you’ll figure out how to adopt better financial habits. Your goal is to avoid incurring any new debt after paying off your creditors.

Beef up your savings

If you experience an unexpected financial emergency, your options include asking friends or relatives for money, using a credit card or tapping your savings. By building up a large savings account, you can avoid running up a large credit card balance.

Don’t carry a balance

After you finish your Debt Management Plan, you may decide to keep one or two credit cards. Having some credit helps your credit score, but it’s not necessary to carry a balance. By paying off your credit card purchases right away, you can better manage your cash flow throughout the month. You don’t need to wait until you see your monthly statement to pay a bill.

Buy an inexpensive car

Cheat Sheet recommends buying an inexpensive used car as part of a debt-free lifestyle. Without a car loan, you’ll have more money to spend on other necessities. Experts such as Dave Ramsey recommend taking the money you would have spent on a car payment and putting it in a mutual fund so you can buy your next car with cash.

Consider community college

Whether you need to take college classes or you have children or grandchildren in school, consider community college. Community colleges is more affordable. Avoiding student loan debt is major aspect of the debt-free lifestyle. Other options include scholarships and using tax credits to attend college.

Debt counseling gives you the edge you need to see how your spending habits affect the big picture of your financial future. Many people don’t think before they buy. Living below your means is easier to do when you have a solid budget that shows the difference between necessities and wants. Instead of running up debt, you can make more or spend less. Living a debt-free lifestyle takes some practice, but you can get it down as you gradually become free of debt. The team at Christian Credit Counselors talks to your creditors on your behalf so you get lower interest rates. You will feel good about yourself because you are doing the right thing by repaying what you owe.

At Christian Credit Counselors, our accredited credit counselors provide debt counseling including help with understanding credit scores, budgeting, saving and avoiding financial scams.

Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.

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