The first step is to use your credit card as infrequently as feasible. This is partially psychological. When most people use a credit card to make a purchase, it is as if they are not truly spending money. And they don't consider the items they've charged on their credit card until the date of their invoicing statement. Unfortunately, by then, many do not have the funds to pay off the balance in full. As a result, the credit card balance is allowed to steadily accrue interest month after month until it is unaffordable based on the individual's current income.
The majority of Americans view credit cards as if they were currency. However, this is far from the truth. It is important to remember that when you use a credit card, you are essentially taking out a loan. You are effectively spending future funds. But in a weak economy, future income is uncertain. Therefore, unless absolutely necessary, avoid taking out these superfluous loans against your future.
The second-most-important thing you can do is develop the discipline of living within your means. This means that instead of purchasing the most expensive'status' car you can afford, you should purchase a vehicle that corresponds to your current income level. Instead of purchasing a home in the most prestigious area of town, invest in the finest neighborhood within your budget. Purchasing items that you cannot afford, typically with a credit card, is a calamity waiting to happen. Due to the fact that so many people live paycheck to paycheck, a financial catastrophe is the one thing they cannot afford.
Many bankruptcies are largely caused by irresponsible purchasing decisions. Occasionally, however, circumstances beyond your control intervene, and you encounter financial difficulties through no fault of your own. In such a case, you may be forced to file for bankruptcy. But in many circumstances, long before you experience financial difficulties, there are steps you can take to reduce your risk of bankruptcy.""
" - https://www.affordablecebu.com/
