It’s all about the Benjamins baby. Now, what y’all wanna do? Wanna be ballers? Shot-callers? Brawlers? Who be dippin’ in the Benz with the spoilers…
It’s All About the Benjamins (feat. The Notorious B.I.G., Lil’ Kim & The Lox) (Remix)
Debt? The topic most Americans try to avoid. This is specifically for my JBY Fam who are looking for guidance in regards to finances. College refunds should have hit by now as well as the many holidays that are coming up and just your regular day-to-day finances like insurance, rent, food, etc. I wanted to discuss a bit about financial literacy; more so on the debt part. Financial literacy is something that the black community struggles with, and it is something that I personally struggle with over time and had a difficult time understanding. I am learning as I go and hopefully these tips I share with you can help.
Avoid debt as much as you can.
Avoid any debt as much as you can, because playing catch up is not fun. This means credit card debt, school loans, personal loans, car notes/insurance, and anything else you can pretty much think of. If you have accrued debt over the years, go seek a financial advisor to come up with a plan on how to repay your debt. I know it can seem embarrassing asking someone for help, but that is what they are there for. It is their job, so don’t be afraid to ask for help! Ultimately, you want to pay down your debt faster so that your debt does not control you.
- Pay more than the minimum balance. I’ve learned this after I had accrued credit card debt. When you pay more than the minimum balance, you are actually paying your credit card off faster. This doesn’t mean pay it down some, then use the credit card again for something else. Bad habits will kick in and you will get in the habit of not paying off your credit card.
- Pay on time. I cannot stress this enough! Please pay your bills on time. Them late fees ain’t no joke and can add up and increase your balance even more. If you are paying your bills late, your financial institution or the service provider will see that you are not responsible and will not likely help you out as much in the future for anything else.
- For example, you have been late paying your bill the past 3 months and would like to request a deferment for a few days so you won’t be charge a late fee. The company most likely will deny your request due to your late payment history and not informing them the reason why you are late. Trust me, they want their money so they will try to accommodate with you.
- Pay every week or two weeks. This is a way to finesse the system. By paying a portion of your monthly bill every week or two weeks beforehand, you are actually decreasing the amount of time you’re paying on your loans and and your interest!
- Leave your cards at home. Yes, your debit and credit card. Only bring them along when you know you are going to an event. Otherwise, learn to leave your cards at home. Doing so will help prevent the impulse to purchase items you don’t really need.
- I usually will take out a certain amount of money in cash to use as spending money and turn off my debit/credit cards. That way I won’t find the urge to keep swiping my cards. This tip has help me out to save money and reduce any credit card debt.
- Save your money. Remember when grandma said she was saving her coins for a rainy day? Heed that advice! It is always a good thing to save money for several reasons. Car repairs, medical situations, vacations, laid off from work, etc. can happen any moment! You never know when you are going to be in a time of need and having those savings would definitely be a blessing.
- Only take out what you need. I know it is tempting when you see a large sum of money in front of you, but the result typically ends up being that you tend to take out more than what was needed. Do not be that person. Take out only what you need, not for your wants. Otherwise, your debt will increase in a situation that could have been prevented.
Thank you for reading my tips on how to reduce debt. Hopefully this has help someone. Please list any tips you have below to help a fellow JBY Fam out. Don’t forget to like, follow, share and comment!
