Everybody knows that there are many different types of debt, and that credit cards are not the only thing that gets people into trouble.  Mortgages and other forms of debt can be just as damaging if they are not paid off in due time. The bottom line is that debt can be damaging no matter which form it is in, and as the consumer it is always crucial that you stay on top of your debt problems before they become too heavy to handle.  Debt is one of the most stressful things people in the modern world deal with, and it is crucial that they stay on top of this situation or it can become consuming.  As the Debt Reduction Doctor I constantly am reminding my patients to be wary of cash advances and other such instances where you may find yourself in a big hole down the line.

While different forms of debt take different methods of payment, the form I want to focus on today is strictly cash advances.  These loans can be used in multiple ways, but can result in trouble if you are unable to remain diligent in the process.  Many companies will charge a small fee for each cash advance, sometimes as little as a few dollars, but it adds up if you become addicted to the process.

Credit card debt is something that can become a very tangled web if not approached responsibly, so you must always remember to accept cash advances or credit card use in moderate doses.  Card issuers are going to view cash advances differently from somebody receiving the loan, so you must be sure you understand where they are coming from as well, and what they expect.  Always keep a calendar of your cash advances or credit card payments so you know exactly when and how much money you must pay off to avoid defaulting or going overdue on your payments.

One way to make sure that you are on top of the credit card companies is to compare bank fees and card fees before signing up for anything.  This keeps you in the loop and allows you to control more of your situation rather than having the credit card companies control you.  Once these companies feel like they have you by the throat, they will become increasingly ruthless and your interest rates will pile up until you feel you are in a completely hopeless situation.

Now, cash advances are incredibly helpful, if they weren’t then they would obviously not be so popular.  However, you must always be sure that you never go overboard on any of these loans because you must remember that it will have to be paid off in the long run.  People tend to get the mindset that credit card use or loans are cool because it’s not actually their money, when they should be thinking that down the line they will end up spending even more money for a product due to interest rates and other payment details they may have overlooked.

In the long run it is always a better idea financially to avoid cash advances and credit cards as much as possible.  There are going to be situations where they are unavoidable, and that is to be expected.  Just remember to keep your level of cash loans or credit in a reasonable ballpark that will allow you to pay off the debt in due time, and not force you into a long term payment plan that could cost you thousands.

We have spent numerous hours discussing how to get out of debt but not nearly as much time discussing what to do once you’re out of it.  One of the more popular approaches that many people are taking today is the cash only approach, which helps them control their use of plastic money which results in lower debt levels.  Once they have escaped debt they feel that the best way to avoid falling back into it is to cut out the previous temptations.  Many of people have gone cash only in an attempt and have succeeded mightily, but there are alternative ways to achieve the same goal without the elimination of plastic.

One of the toughest parts of the cash only approach is the unexpected expenses that were previously given over to the credit card.  In order to be able to prepare for these unexpected items that are sure to come you must always have some sort of back-up plan.  The wisest and most convenient way to plan for these unexpected expenditures is to always have a reserve of cash on hand in case of an emergency.  Every individual or family who has gone credit card free knows the importance of keeping a cash reservoir in reserve, whether in a bank account or home safe.  Personally I would recommend some form of saving account so you can at least earn interest on your money.

Another of the most popular reasons for going credit free is the outrageous late fees they continuously bombard you with.  One missed payment can jack your debt level up to unbelievable numbers, and leave you paying much more than you originally borrowed.  That in combination with the interest you pay make a lethal combination that can cost tons of money down the road.

Going credit free can be something for anybody to consider.  You certainly do not need to be debt free to begin to enjoy life without the potential credit tidal wave.  If you have simply had enough of the headaches you can turn away from it and begin as soon as today, but you must continue to make a conscious effort to stay away from the credit temptation.

There are certainly a number of positive reasons for switching to a credit free lifestyle, but there are negative results as well.  Credit can be a wonderful safety net for those unexpected emergencies we mentioned earlier.  It allows you to be able to survive without the safety cash reservoir, freeing up more of your income immediately.

In my honest opinion credit cards are not necessarily a bad thing.  Sure they have a rotten reputation but that is more because of the human factor than what they provide.  The service they can give you is a peace of mind and level of stability that you may otherwise be unable to achieve.  The safety net of a credit card is a fabulous advantage that millions of people take for granted every single day.

Now, if you are able to live with a credit card and maintain a responsible financial budget then I would advise to continue living in this manner.  Just because you read somewhere that tearing up their credit cards helped some people out doesn’t mean it is the right choice for you.  Just like any other financial decision it comes down to your personality and the way you choose to spend your money.  Both these options are very livable ways of life, and both have upsides and downsides.  The trick is for you to determine which suits your way life the best.

While I am known by many as the Debt Reduction Doctor, I can help you in other financial areas as well.  One of the best ways to get out of debt and stay out is to make wise investments that are going to stabilize your financial budget, and maybe even give you a little extra spending money.  Another way that you can utilize wise investments is to help get you out of debt, which sounds risky but can have a great effect on your budget by the end.
If you are one of the millions of Americans struggling with debt you understand that it is very difficult to find additional funds to pay off your debt.  Whether you are looking at credit card debt, a mortgage, or any other type of debt, it is a nauseating feeling trying to come up with a solution.  One route you may be able to pursue is investing.  While this is certainly a risky proposition, if you are able to do your homework and find successful investing opportunities you will get out debt much quicker than if you just saved up your money from your everyday job.

Once you determine your investment strategy you must continue to stay diligent and on top of things.  Determine your goals, in this case debt relief, then search for the best possible investment opportunities.  It is critical that you do your homework here, because if you don’t choose wisely you will lose your investing money and be left with less than you originally had.  Will you invest in stocks or other forms of investments?  Will you pursue mutual funds?  These are all things that are going to vary by the individual, and only you are going to know what the best solution is for you.

Now, do not feel like you are all alone in this process either.  It is important to get some help when trying to determine which stocks or investments are the best.  Do plenty of research and study the trends of the particular investing opportunities you are pursuing.  A financial advisor may be able to help you determine whether or not this is a good idea for you, and much of that will depend on your budget.  However, if you are serious about escaping debt and feel confident in your ability to invest money wisely then you should definitely look into this form of money making.

There are many different ways to get out of debt, and this is just one example.  However, as the Debt Reduction Doctor it is my job to put forth all possible solutions to this problem.  Entering into an investment opportunity is certainly not the most secure way to escape debt, but the potential upside is immense.  With a successful investment you may be able to cut your debt reduction time in half, at least, just with a few good investments.

The problem that arises in this situation is that not every investment is a successful one, and that some people may end up losing the money they invest.  This will no doubt result in a longer period of time you are facing the uphill climb of debt reduction, especially since it may turn them off from investing in the future.  This is why it is so critical to do your homework and research all possible outlets before jumping into something.  If you are able to find a successful investment opportunity you will get out of debt much faster than simply saving pennies and making payments when you can afford it.

I am sure that you have heard hundreds of different tips from different people telling you the most successful way to save your money and become financially stable.  Now different ideas work for different people, and odds are many of the different solutions you are told will not work for your particular budget.  However, being the Debt Reduction Doctor, I have several other tips that may seem a little easier for you to follow.

The first tip is universal.  This tip will be relevant for anybody, no matter how much money they make.  Whether you are the CEO of a major company or working the photo counter at your local Walgreens, always save at least a little bit.  Many people feel they are too broke to save money, and that simply is not the case.  Even if you are working a minimum wage job you must try your hardest to put some money on reserve.

Now, obviously the less money you make the harder this task will be.  However, if you can become diligent enough to begin to save a little bit of money you will begin to notice a drastic difference in your bottom line.  This technique is especially useful if you are looking to pay off a credit card or other type of debt, as the more money you are able to save is more money you can use to reduce your debt level.

In one of my earlier articles I discussed the ever changing world of needs versus wants.  This is an elemental process in the world of debt reduction.  Determining which items you must purchase to survive compared to those that are only going to slightly improve your quality of life is important when you look back at the money you’ve spent over the previous month.  Every coin you are able to save is one that can be used in the long run towards improving your life quality and reducing your debt level.

My third tip of the day is to consider the true cost of any purchase.  Now, the true cost is more than just the numbers on the price tag.  This is because every purchase extends beyond the immediate cost that allows you to own the product.  All you economics nerds out there you already know where I am going with this, and if you don’t then you will soon enough.  If you purchase a new purse for $200 not only are you losing that $200 for the purse, which is $200 you cannot spend on other things.  For instance, if your rent is $1,000 dollars you must now earn $1,200 dollars to pay off both your rent and the purse, instead of just $1,000.  It is a slightly confusing concept, but it certainly is relevant to spending money today.

Now, the final tip from your Debt Reduction Doctor today is one that seems relatively obvious, however thousands of people still face this issue every day.  Do not, under any circumstance, spend more than you make!  I told you it was obvious, but many times the news a doctor must give is.  Drink more water, exercise daily, don’t spend more money than you earn!  As obvious as it seems, tens of thousands of people still struggle with this very concept every single day.  If you can learn to directly correlate your spending with the amount of money you are earning and find a healthy medium you are already going to be miles head of many other people.

While many of these tips may seem obvious or simple, they rarely are.  Reading and agreeing with an article you found online about your finances is much easier than putting these plans into action.  If you are able to live by these rules, while still creating a few of your own, you will find yourself marching towards a clean bill of financial health.