Staying out of debt again?

Question

I was very high in credit card debt for being 20 due to an ex-boyfriend. But I cleaned it up and now I can start rebuilding my credit. I applied for a credit card cuz face it we need one in todays world to do anything. But if I get it fine, but if not then fine also I'll deal. BUT I am worried that I may start going crazy with it and get myself into debt again. What can I do so I don't?

Answer 1

My friend told me about a book by Dave Ramsey called "The Total Money Makeover" it had some good ideas...like no debt for ANYTHING (he does realize some will anyway for a house ...so he explains how to do that if you must...) but One great idea he had was to (at very, very first) get an emergency fund built up of $1,000 ....this is not to be used per se...but it is a hedge against any debt...so you will never have to go in debt for anything...His book explains a lot of misconceptions people have about money too...which are very insightful! anyway that is my main suggestion to you!
Some of the next stuff he talks about to do after that is to ...get out of debt!!! and he uses an analogy of "gazelle-like" intensity (ie. work like crazy for 20months) ---as in--- imagine a gazelle trying to outrun a cheetah...(the gazelle escapes with intense short bursts in a certain direction)(and the cheetah can't change directions fast enough...so the gazelle escapes)
also 2 of my other favorite books pertaining to money and money management are "The Richest Man in Babylon - sorry I can't remember the author right now "and "Approaching Zion - by Hugh Nibley" anyway...good luck with it!

Answer 2

Credit Card Debt Management

Credit cards are a great source of availing credit to meet your requirements. But they can lead to a debt trap from which you will find it difficult to come out. Hence you need to keep a close watch on your credit card expenses minutely. Failure to do so might destroy your credit rating, leading to collection and even legal action...........

Answer 3

Credit cards are an easy way to run your
financial life down the tubes.The best way to have a credit cards would be to use a debit card.You get this threw your savings or checking threw your bank. You deposit there requested minimum or more and you'll receive your debit card and a pin number. in the mail.You can use it at any
ATM machine plus you can get your

credit balance.

Answer 4

Excercise some self restraint. Credit cards are for convenience, use your card for emergencies, don't charge anything that is not an emergency that you can't or do not intend to pay off in the next billing cycle. If you think you may go crazt don't carry it around all the time or don't get one.

Answer 5

leave the card at home and only take it out every 2-3 months and buy something small/cheap and pay it off at the 1st billing. this keep the card active and the credit scorers happy. also use cash and/or checks because you'll see more clearly where your money is going.

Answer 6

Lets face it. If you don't have money, what do you need a credit-card for? You are spending money you don't have and that is expensive.

Use cash only and you will never be in debt.

Answer 7

yes, use cash only
save 1000-2k for emegerncy cash in case your car broke down,or your apartment run down, or doctor appointment
Control the urge of spending lavishly that you do not need
seperated what from need and want
need: food, gas,utilities, insurance and rent
want: fansy cloth,fansy car,latte, eat out every day
try to paid off your car as soon as you bought it and un it until they can't no more. I've been there. In the meantime, try to learn how to save and invest the right way. From there you do not have to feel living pay check to paycheck, I'd done it,so can You. I was luckily enough to turn around.
Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 71,000.00 and 30000.00 in taxble account. by follow simple rule

Answer 8

What about a funds? make certain out what you soak up each month and estimate your expenditures (on the better end). Then supply your self slightly "ingesting out/sport" funds. continuously attempt to have funds left over to positioned into mark downs. You by no skill comprehend what can take position. also by no skill fee something that you may not repay at the same time as the bill comes. yet once you ought to finance something, settle on how lengthy you'd be prepared to save it on your mastercard --repay something else of the fee each month and amortize that one purchase. you ought to make certain what you've each month to comprehend what you want to do to save issues in line. credit can be a marvelous aspect even with the undeniable fact that it may also smash lives. information is skill. comprehend what you've and comprehend what you owe and also you'd be able to handle it. Write it down---examine it on the right of each month to make certain how close you got here to following your plan. i desire this permits.

Answer 9

Try talking to Primerica Financial Services, they will give you a free financial needs analysis (financial plan) that will show you how to get out of debt and become financially independent, their services are free, and they can help.....at least they did for me, $10K of debt almost paid off :0) Look them up in phone book