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How to Avoid Consumer Debt in Today's Economy

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How To Avoid Consumer Debt In Today's Economy

Millions of Americans struggle on a daily basis and are becoming stressed and depressed due to the failing economy. In fact, it seems every year many consumers go further and further into debt. Therefore, the question arises, "What can we do to help eliminate this problem?" I believe there are several ways consumers can cut down on their debt. Due to our current economic situation, consumers should learn how to control their debt, spending and saving habits with debt management, thrifty spending, and savings fund.

First, consumer debt is an issue that is rising steadily in our nation. Moreover, to help reduce this problem, consumers can try to lower their monthly bills with refinancing mortgage loans, credit card consolidation, or car loan refinancing. When compared to other types of refinancing, car loan refinancing seems to be the easiest. For the beginner, credit unions can be the best choice for refinance. By reducing the interest rate, the monthly payment will therefore be lower; thus, it can save an individual a lot of money every month. In addition, one should always research the many different lenders to see which one offers the best loan and interest rate for his or her need. Also, make sure that the lender is not rolling a loan fee into the loan. Like everything else, there are several advantages and disadvantages to refinancing and should be elected with careful consideration.

Secondly, consumers need to learn how to spend their money more wisely. There are several ways one can spend his or her money more efficiently. For example, instead of driving to work every day, try and find a public transportation bus and ride a few times a week; not only does this save money, but helps the environment. However, I think the biggest money saver is eating at home versus dining out. People do not realize how much money they spend on just eating out alone. If a family chooses to go out to eat, there are many restaurants that offer free food or discounts for children on certain days of the week. Clearly, this would save money for families by only dining out on the days that there are discounts or free food for children. Many grocery stores offer coupons in newspapers or online for consumers to use. I have found coupons to be a big money saver on my grocery bill. Next, consumers can shop consignment stores or only shop department stores when there are big sales for clothing needs. In addition, many families' have saved money by only having free or low cost entertainment. There are lots of places that offer fun for the family that are pocket book friendly. For instance, one money saver is choosing to go to the dollar movie theatre instead of the regular movie theatres. In fact, by going to the dollar movies versus the regular movies, consumers can save on average about seven dollars a person. Lastly, there are several other things that



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