Eliminate and Avoid Debt - National Guard Family Program

Introduction to Personal Finance
An Overview for State Family Program Directors, Wing Family Program Coordinators, and Families.

Introduction

Evaluating Your Situation

Budgeting & Debt Management

Goals & Plans

Insurance & Disability Planning

BUDGETING AND DEBT MANAGEMENT

2.	Introduction
	2.1	Why Do We Acquire Debt?
	2.2	Debt Can Become a Habit
	2.3	The Reality of Borrowing
	2.4	The Credit Trap
		2.4.1	Fees
		2.4.2	Rates
		2.4.3	Types of interest
	2.5	Eliminate and Avoid Debt
	2.6	Trimming Your Budget
	2.7	Learning Check

2.5 Eliminate and Avoid Debt

How to Eliminate Debt?

Problems invite resolutions.

There are ways that you can end your slavery to debt:

$ Get a debt liquidation schedule.
$ Consolidate your debts.
$ Establish a budget and stick to it.
$ Stop unnecessary spending.
$ Develop a plan for the future.

How to avoid debt in the future.

Have a plan and implement:

Save for emergencies.

Save for cash purchases.

Save for freedom.

Caution: If you have a checking account and savings account, you should be sure to have overdraft protection – because returned (bounced) check fees are expensive. Overdraft protection will automatically transfer the money from your savings to your checking if you become overdrawn.