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Would You Rather Have no Debts?

By Stas Bekman.

Published: 16 July 2006

Would You Rather Have no Debts?

Unpaid Debt is bad for you, since you end up paying around 18% interest on it, which is quite against the idea of saving. By paying cash you ensure that you can't overspend. Get rid of those dozens of credit cards. Keep just one or two for emergency. It's much harder to get departed with your cash, than handing a plastic to someone and not having any appreciation of your money leaving your bank account.

Some people even suggest to freeze that last card in the bowl of water, so you can't easily get hold of it and spend money that you don't have.

Sometimes you can buy things for a lower price, if you ask the seller whether he will give you a 3% discount for cash payment (because they end up paying 3% to the credit card company for each transaction). This could be a significant saving if the purchase is big. And it all adds up at the end.

If you do use a credit card, be careful when you withdraw cash with it. Check with your card issuer whether you start paying the interest right away.

Related Material


Are You on the Road to Bankruptcy? (http://www.ricedelman.com/planning/onyourown/bankrupt.asp)
Three Strategies to Avoid Debt

How to Use Credit and Avoid Debt (http://www.youngmoney.com/credit_debt/credit_basics/020908_01)
Financial Success for College Students by Flora L. Williams, Ph.D.

Pay your cards right to cut debt (http://money.scotsman.com/scotsman/articles/articledisplay.jsp?article_id=3461094§ion=Banking&prependForce=SM_XML_)
How not to go bankrupt

25 Fascinating Facts about Personal Debt (http://www.bankrate.com/brm/news/debt/debtguide2004/debt-trivia1.asp)
Paul Bannister provides very interesting statistics about personal debt in United States.

Avoiding debt (http://finance.yahoo.com/education/managing_debt/article/101803/Avoiding_debt_managing_your_credit_wisely)
...managing your credit wisely

How to Avoid Debt (http://www.princetonreview.com/college/finance/articles/smart/avoiddebt.asp)
New clothes, new shoes, new MP3 player...ahh, the life. It is much more fun spending money than it is saving money.

Essential Guidelines to avoid debts (http://www.debtleap.com/debt-articles/avoid-debt-tips.htm)
A few tips to avoid debt may be all you need to spend wisely and to stay fanatically safe.

Avoid Credit Card Debt During the Holidays (http://holidays.about.com/od/giftideasshoppingtips/a/HolidayHangover.htm)
How to Avoid the Financial Holiday Hangover



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