Being in a mound of debt is a place you never want to find yourself. Unfortunately, getting in debt is something that can happen no matter how much you prepare- life is always throwing unexpected things at us, to say the least! No matter what you do, you can never expect the unexpected. However, there are some things you can to ensure that you never get yourself into debt. Read on for some tips to help you out in any tight situations.
1) Save for a rainy day
Hopefully, this is something that everyone is doing anyway! You may think that you aren’t earning enough to be able to save or are putting it off until you are earning more. However, there is always something you can do, no matter how small. Assess your spending habits and make a plan for how to spend more frugally. One thing you can do is to set up a direct debit from your current account to your saving account for a small amount each month, the same day as your payday. Your savings will build up over time, and you shouldn’t notice much of a difference if you haven’t seen it in your account in the first place! Another tip you should follow is to choose to pay back any loans you have fortnightly rather than monthly, this way you will sneak in an extra payment in the year without really noticing it.
2) Dealing with things instantly
If you do find yourself in a situation where you need a lot of money, quickly, the best thing to do is to deal with it as soon as you can. There will usually be a way to do that. An example of this is, if you find yourself taken to court, you will probably need to find some money for bail. If you don’t have savings, finding bail money can be a terrifying thing to have to do. So to get it dealt with quickly, you could use a bail bond. Try to go for one open 24 hours such as A Be Out Bail Bonding so you can get assistance at all times. The company will pay the bond for you and take a percentage back when you get your bail back from the court.
3) Insure everything
There are some thing you can do to avoid the horrible cycle of debt, and one of them is to insure everything that can be insured. All of the biggest disasters in life are often the most costly. For example, if your house gets broken into, you will lose all your possessions. You need to make sure you have contents insurance as well as home insurance. You should also make sure you and everyone close to you have life insurance. It is a very upsetting thing to have to think about, but it is so important to keep everyone out of debt. Have a look around at different insurers and make sure you get the best deal. It may feel annoying to pay out every month for insurance, but it just guarantees you stability later on.