In part one of this two-part blog series, we looked at some of the simple habits that debt-free people tend to take in their lives. For those dealing with debt issues, emulating some of these habits may be helpful for not only getting back on track financially, but also avoiding falling into a harmful debt cycle again in the future.

At 1st Choice Money Center, we’re happy to offer several quality short-term loans for those with debt needs in Idaho, including installment loans, title loans and other alternatives to harmful payday loans (which we do not offer). We also regularly offer clients tips and expertise on how to stay in good shape financially and avoid major debt obligations. Here are some of the other habits that debt-free people tend to have, and which you should consider adding to your life if you’re struggling with debt.

Pay With Cash or Debit Where Possible

While utilizing your credit is sometimes a necessity, using it for everyday purchases is not a good idea if you’re trying to get out of debt. This will increase your debt and interest payments, putting you further behind.

Instead, think about using cash or your debit card for regular expenses like groceries, gas and entertainment. You can still use credit when needed, but make it a point to use it sparingly.

Try to Put Aside Money for Savings

Another habit of people who stay out of debt is saving money on a regular basis. It may be difficult to do if you’re already struggling to make ends meet, but even setting aside a small amount each month can help you in the long run.

An emergency fund is a good place to start, as it can help you cover unexpected expenses without having to put them on a credit card. Once you have an emergency fund in place, you can start working on other savings goals, like retirement.

Keep Track of Your Spending

It’s also important to be aware of your spending habits if you want to avoid getting into debt. People who stay out of debt typically keep close track of their finances, so they know where their money is going.

There are a number of ways to do this, including writing out your budget, tracking your expenses in a software program or even using a simple notebook. Find a method that works for you and make sure to keep an eye on your spending.

Create a Debt Repayment Plan

If you’re already in debt, one of the best things you can do is create a repayment plan. This will help you focus on paying off your debts and getting out of the hole you’re in.

Start by listing all of your debts, along with the interest rate and minimum payment for each one. Then, come up with a plan to focus on paying off the debt with the highest interest rate first. Once that debt is paid off, you can move on to the next one.

Making these changes in your life won’t happen overnight, but they can make a big difference if you’re trying to get out of debt. If you need help getting started with debt reduction or related needs in any part of Idaho, contact 1st Choice Money Center today!