3. Don't improve your credit score.
If you monitor your credit score and have achieved a great score, why spend any additional effort to improve your score? Remember, your credit score only affects you if you ever get denied something based on your credit score and in some cases, getting denied might be a good thing for you.
Some people keep balances on their credit cards and keep loans just to build their credit score. This leads to paying larges amounts of fees and lots of extra worry.
4. Don't finance anything that depreciates.
Anything that depreciates is a want, not a need. If you keep focused on using the cash that you have, rather than cash you will earn in the future, you will save yourself a lot of headache.
Most people finance everything they want in life. When unexpected emergencies come up, they are left stranded and strapped for cash.
5. Track your spending through a check register.
Before we had the ability to spend effortlessly and on a whim, there were people that actually wrote down everything the spent, whenever they spent a dime. This allowed them to constantly look through their spending habits and readjust accordingly. While you may not use an actual check register, you should find some way to track your daily spending.
Most people quickly glance at their statements and don't even know their current checking account balance. This can lead to overdraft fees and running out of money before the month is over.
This post was reposted from http://finlit.biz/uncategorized/5-simple-tips-to-decrease-debt-part-ii/, originally written on August 20th, 2013.
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