Debt Prevention

The best way to deal with debt and other financial problems is to avoid them. Develop positive financial habits and build a good personal credit history by following a few simple rules.

1. Pay all your bills on time - This will prove your reliability and ensures that you are a consistent and responsible consumer, not to mention saving the expense of costly late fees.
2. If you can afford to, make more than your minimum payments - Paying more than the minimum balance will help you to eliminate the principle debt more quickly. Otherwise you may be paying mostly on interest.
3. Keep an eye on your debt - Your creditors assign a credit limit based on your credit history, outstanding indebtedness, and income. If you are at or near your limit it is a good sign that you're headed for trouble.
4. Keep an eye on your available credit - Multiple accounts and high credit limits could result in excessive debt in the future.
5. Stay informed about your credit - Check your credit report regularly and dispute any inaccuracies.
6. Start and maintain your personal savings - Savings are an important way to protect yourself in the event of an unexpected financial situation.
7. Be honest with yourself about your financial situation - Only personal effort, prudence, and planning can repair problems and ensure a healthy financial future.
8. Create a budget (and follow it!) - Make sure that your style of living and your income are in complete agreement. Regularly analyze your budget and make adjustments as necessary.

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