You can borrow every month with credit card debt, provided you also repay the amount within a stipulated period. If not repaid on time, credit card debt can cause your credit score to fall drastically, which means borrowing becomes difficult and expensive. Although it is a common term, most people do not realize how grave credit card debt can be until they face it. At the same time, following certain tips to manage your finances well can help you to avoid credit card debt. It’s always easier to get into credit card debt than get out of it, so here’s how to avoid it altogether: Scan the fine print You are recommended to thoroughly understand all the rules and regulations of your credit card. Also, ensure that you are familiar with each term and condition of your card as well as its rewards and benefits. This will ensure that you use your credit card wisely. Keep a tab on the number of credit cards you own A helpful tip to avoid credit card debt is to never open new cards or credit accounts unless you need them. A wallet with umpteen cards will drive you to splurge, and you may end up spending more than your budget.

Credit scores are numerical expressions of your creditworthiness and are based on your credit files and reports. These scores are used by creditors to gauge your likelihood of repaying any debt owed, along with interest. The scores also determine the rate of interest at which credit will be provided, and if you have an excellent score, you may also get loans at a lower rate of interest as lenders consider you to be a reliable borrower. Sometimes, you may find yourself in a financial bind and need to look for ways to improve your credit scores to get a loan at a better interest rate. Usually, improving credit scores takes time and requires patience, consistency, and financial discipline. At the same time, even small changes in your habits can go a long way in improving the scores and your credit history in the long run. The following tried and tested methods are highly effective if you’re wondering how to improve a bad credit score: Make micropayments Make small payments constantly instead of waiting for the end of the month to make a single large payment toward repaying debt. It even bodes well to use a credit card as a debit card, and you can do this by using the credit card for a transaction and then paying it off online almost immediately.

While shopping around for a mortgage, you must understand everything about them. It is important to research home finance and avoid some of the most common mistakes made when getting a mortgage. Here are four mistakes that you need to avoid to save time and money and ensure a hassle-free process: Not exploring offers with multiple lenders Consumers tend to compare before they shop around for things like TV, car, and other appliances, but many do not bother to do the same with mortgage loans. Consumers concentrate on the interest rate and the purchase price of the home. The total loan amount will be affected by whether the interest rate is adjustable or fixed, along with a slew of other factors. So, it is advisable to check online lenders, credit unions, large lenders, and mortgage brokers to avoid paying more than you need to. Taking a long time to address your credit problems If you plan to buy a home, do not wait until the last minute to solve any financial or credit issues. Even if you are not buying a home, you should regularly check your credit reports and flag any discrepancies to get them fixed. This will also help you understand where you stand financially.

Retirement plans like 401(K) and 403(b) may also allow you to borrow money from the accounts in case of an emergency. A loan from 401(K) can be helpful if you are facing a financial crisis or need money for a particular reason. The interest you pay on these loans also goes into your own account, adding to the benefits of taking this loan as compared to a bank loan. At the same time, you need to understand the basics of 401(K) loans before you make a decision. It is a loan Many make the mistake of treating a 401(K) loan like borrowing from their savings account in a bank, but a 401(K) loan has to be repaid with interest. Repayment When the loan is initiated, it has to be repaid within 1 and 5 years. The repayment begins a short time after disbursement of the loan, and the repayment installments are automatically deducted from your paycheck. As it is a regular expense deducted from your monthly paycheck, you need to adjust your budget accordingly. Employers prevent their employees from making new 401(K) contributions until a loan is repaid, so taking a loan against your 401(K) plan also affects your retirement goals.

Smoking is an addictive lifestyle habit for many and contributes to at least one in five deaths worldwide. The leading smoking-related causes of death include lung cancer, cardiovascular disease, and chronic obstructive pulmonary disease. However, these three diseases are the tip of the iceberg among other chronic smoking-related diseases. Quitting smoking can add valuable years to your life and it’s never too late to quit. However, quitting earlier is better, and there are effective methods for smoking cessation that give real benefits. While treatments are available, let’s look at a couple of unassisted ways to quit smoking. Go cold turkey This method is by far the most effective way to quit smoking. Nearly 90% of individuals who attempt to kick the butt do it without any support. There are no aids, therapies, or medication involved. Though a majority of people try to quit smoking this way, it’s not the most effective method. That’s because cold turkey means abruptly withdrawing from smoking addiction and complete cessation. Only a very small percentage of people can successfully quit smoking this way. Yet, if you have the determination and the will, going cold turkey is one of the most effective methods for smoking cessation.