You did it! You did your research, planning, budgeting and cut every corner you could and you finally managed to get all that debt paid off. You have a clean slate. Life is good. Until your car breaks down or you get sick and take some time off of work or you have a baby. Then suddenly you’re staring debt in the face again. You didn’t spend all that energy, time and money to get out of debt just to wind up right back where you started. It’s important that as you’re climbing out of the pit you take steps to ensure that you don’t land right back in it. Here are some tips to help you avoid a debt relapse.
Cash is your Friend
When trying to avoid going back into debt leaving your credit and bank cards at home is a great first step. It’s easier to slide a card and not think about the money that you’re actually spending. Using cash for all your purchases will help keep you more aware of exactly how much you’re spending. It’s also wise to have a budget and only carry your allotted amount of cash with you. That way overspending isn’t an option.
Leave Credit Behind
Now that you’ve gotten your debt and credit all cleared up you’re going to have the ability to get new credit cards. Don’t. Spending money that you don’t have is the fastest way to dig that debt ditch again. If you don’t have the money on hand to make a purchase, then don’t make it. Avoid credit cards if at all possible.
Continuing to budget, cut costs, pay more than the minimum monthly and the other tips and tricks that got you out of debt in the first place are things that you need to continue to do to stay in the green. However, if life manages to get out of control and you do end up with those calls from creditors again, head over to Debthelper.com. They’ll be more than happy to help you escape that debt again and give you more great tips on how to avoid it in the future.