Avoiding Debt: the Practical Ways

These practical ways to save money will help to reduce debt and interest payments on any credit borrowings.

• Avoiding Credit Facilities

Get into the habit of saving for items rather than using a credit facility. Both bank overdrafts and credit card debt are very expensive tools for borrowing money. Avoiding these methods will not only reduce the amount of interest paid, it will also help prevent financial difficulties. There are a range of debt solutions available for those who have unmanageable personal debt.

• The Hidden Costs at ATMs
  

Many banks charge customers for making a withdrawal from an ATM that is outside their own network or below a certain amount. A practical way to save money is to read the latest copy of the Terms and Conditions’ to identify the banks’ policy in regards of making cash withdrawal transactions. Any person who wishes to start a lifestyle based around frugality should avoid credit card cash advances from ATM machines.

• 0% Balance Transfer Credit Card

One of the most practical ways to save money is by transferring debt to a new credit card. Whilst there is a fee of approximately 3%, it is possible to reduce debt by performing a series of interest-free balance transfers until the full balance is cleared. A good credit rating is necessary if this money saving idea is to be implemented. Missed payments will show on credit reports for a period of 6 years.