Manage Your Debt: 4 Tips
 By Terry M. Blair

Most consumers carry some debt. Many owe big chunks of money on their home mortgage or car loan. Others have small credit card balances.

For many people their level of debt is reasonable, and making payments is no problem. But for those who experience a financial emergency or those who let their spending get out of control, debt can be a heavy burden

Here are five tips that can help you reduce your debt and avoid incurring more.

1. Pay with cash
Some purchases, such as home, may require that you take on debt. But many more should be paid for with cash if you want to manage your debt.

Plan for purchases and save money so you can pay cash for as many items as possible. The New Jersey Society of Certified Public Accountants reports that people who pay with cash instead of a credit card often spend more than they can afford.

If you use credit cards, set them aside for big-ticket items and emergencies.

2. Make payments on time
If you lab behind on payments or skip payments, you’ll incur late fees. And you’ll give your creditors a reason to raise your interest rate.

3. Pay attention to your credit report
High credit scores can help keep you out of debt. Low scores often mean you’ll pay higher interest rates on credit cards and personal loans.

Three major credit agencies maintain information about your credit history that contributes to your credit score. The score is based on a variety of factors such as:

• Whether you make payments on time
• Whether you accumulate big balances on your credit cards
• How much debt you have compared to your income
• How many outstanding loans and credit cards you have

It’s worth your time to review your credit report annually and correct any errors you find. Best of all, you can check your reports for free.

Just go to www.annualcreditreport.com. At the site you can request an online report and view it immediately upon authentication of your identity. And you can receive free reports from all three major credit agencies:

• Experian
• Equifax
• TransUnion

4. Use Your AFS Discount Coupons
Spending less is a smart way to reduce your debt and increase your savings. AFS can help you do just that with discount coupons on a variety of services and products.

Start with the Auto Coupon Book that gives you discounts on parts and services. AFS Members can take advantage of immediate savings routine maintenance such as:

• Tune-ups
• Oil changes
• Wheel alignments

Plus, you can save on:

• Repairs and batteries
• Tires and brakes
• Mufflers and shocks
• And more

The Auto Coupon Book gives you more than $1,000 in valuable offers from nationwide, well-known auto service suppliers such as Jiffy Lube, Meineke, Firestone and Maaco.

Want to save on groceries as well as auto services? Then use your GrocerySavers Coupon
Order Book.

AFS Members save up to $1,000 or more. Plus, you select coupons you want for the name-brand products your family uses every day. Order your book online or by mail.

AFS Members receive one complimentary book per year and can buy additional books
for just $4.95 each.


(Posted May 2010)

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