Last Minute Shopping – Watch That Debt

December 23rd, 2008

While you are out shopping for some clothes to wear to the Christmas party, last minute gifts, or grabbing a few “Merry Christmas to Me” gifts, please think about your debt.  While it is natural to want to outdo others, or to indulge one’s self over all the hard work you have done this year, analyze your rewards carefully.  If you put much on a credit card, or rob peter to buy paul a Wii, you might want to rethink things.    It is okay, of course, to charge things that you are going to walk on down to another register to pay off to establish your credit, but a string of charges is no better than saying, “I’ll gladly pay you Tuesday for a hamburger today.”

In the UK, an IVA is very popular way to consolidate or look at your debt. An “Individual Voluntary Agreement” is an agreement made between you and everyone you owe money to and is legally binding. It puts everything in writing and you can see what you can reasonable afford to pay in a 3 to 5 year plan.  Services are available to help.  Even if you don’t have high debt now, using this principle to keep track may help you from getting into a jam you can’t get out from under much later.

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