Staying debt FREE
When it comes to financial planning, I am one of the weakest person as I hardly know how to manage my finances well. Being poor in accounting is one of the reason and being a compulsive shopper is another reason. Though I scout for best buys and try using whatever discounts I could get I still can’t be rich… but I am lucky as I do not need to commit myself in purchasing high value items so I can still stay debt free. Unlike my fat pig, he is really good in this area.
We have seen many people letting themselves get caught up with all sort of debts. Mortgages, car loans, study loans, credit card debts and gambling loans which the Ah Longs (loan sharks) are more than happy to extend. Some (often the youngsters) even suffered bankruptcy after they failed to make repayments.
I find that a lot of youngsters now (especially those in the early twenties) are so prone to bankruptcies simply because they do not know how to manage their finances. Most will continue to pile up their debts despite the fact they can’t make the repayment. Recently some banks are beginning to offer debt management information to all their clients in the hope they do not get further trapped with mounting debts and also to curb the escalating bankruptcy rates.
That’s why PiggyBeng and myself will clear all our credit card bills and do not let it lapse to avoid paying the high interest rates. PiggyBeng is very particular and always remain debt free if possible.
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