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JK Harris Advisors offers advice to help Americans stay out of debt
NORTH CHARLESTON, S.C - Augie Ortega, Vice President of JK Harris Advisors, LLC, says staying out of debt can be hard to avoid, but it is not impossible if you avoid temptation and apply a few financial fundamentals to your personal spending habits.
Current news reports show many Americans are caught up in a spiral of consumer debt that is often hard to escape. Most Americans have some type of debt, be it a mortgage, car loan or credit card payment.
“The most important thing I stress to my clients to keep them out of debt is to live within their means,” says Ortega, a Certified Financial Planner. “If you are spending more than you are bringing in, it will catch up with you in the form of consumer debt.”
Ortega offers the following advice to those who are looking to avoid debt:
- Pay with cash whenever possible.
- Monitor your spending habits to set up a monthly budget which accurately reflects monthly expenses and what is normally spent on discretionary items (items such as entertainment, magazine subscriptions, cell phones, and credit card payments). Determine what you exactly spend money on and where you can cut costs. Avoid spending too much on items that are wants, not needs.
- Have three months worth of living expenses saved for unforeseen expenses or emergencies so that you do not have to use credit cards. If you cannot avoid using credit cards for these situations, keep one on hand that requires you to pay it off each month.
- Avoid unsecured short-term loans , such as loans that accrue interest on a weekly basis. Vehicle title loans should not to be considered a first option either. For instance, if you cannot repay the loan, you could jeopardize obtaining clear title to your vehicle. These types of loans have the tendency to put you in a never-ending spiral of paying the interest only and not the principal.
- Watch your spending as the holiday season approaches. Avoid the overspending spree by setting a budget and sticking to it. Do not charge your holiday purchases.
“Staying out of debt takes self-discipline, but the rewards are well worth it,” said Ortega. “If you find yourself in debt, these tips still apply to you. Following these tips will allow you to stay debt free or rid yourself of debt and achieve financial freedom.”
JK Harris Advisors, LLC is an affiliate of JK Harris, the nation’s largest tax resolution firm. The company provides financial planning services to help its clients identify, establish and achieve their financial goals and objectives.