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Steps for Staying Debt-Free: Moderation is Key

erase-debt1Getting out of debt isn’t easy, but when you make that last payment and become completely debt-free, the overwhelming relief and freedom you gain from accomplishing such a huge feat can make it all worthwhile.

Anyone who has paid off significant debt will tell you that the journey to becoming debt-free was a long and difficult road, paved with a lot of hard work, determination and sacrifice.

As a result, it’s completely understandable that newly debt-free people may want to reward themselves for a job well done.

The problem, however, is that if you’re not careful, it’s easy to slide back into the same spending patterns and end up right back where you started.

Getting out of debt is hard, but staying out of debt can be even more challenging.

Here are a few lessons that may help you stay on track, avoid a debt relapse and keep you out of debt for good.

Loosen up on the budget and breathe,  just a little.

You’ve come a long way and now you’ve earned a little breathing room.

Don’t go crazy, but do give yourself permission to spend a little more on creature comforts, as long as you can really afford them, so that you don’t feel so deprived.

Moderation is key.

Pay with cash- or charge only what you have the cash on hand to cover.

Look, credit cards aren’t 100 percent bad. It’s the temptation and how we use them that can be bad. Doing away with credit cards altogether could impact your credit and your ability to leverage money.

Therefore, make a promise to yourself — especially if credit cards are a weakness for you: limit the number of cards you use to two, and only charge what you know you can pay in full when the bill comes in.

Don’t splurge. Plan.

If you want to take a cruise or buy the latest HD-TV, plan the purchase and save the cash upfront.

Read more: MintLife

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