Save for big-ticket purchases7 of 9If you have to plug into the credit grid every time you need to make a big-ticket purchase, you won't be off the grid for long. Instead, start a replacement fund for big-ticket items well ahead of when you'll actually need one, says Burton.For example, once you've paid off your car loan, instead of going out and financing a new car, drive your current vehicle until the wheels fall off and instead pay the amount of your old car payment into a savings fund for a new car.Seriously committed debt haters can even apply this logic to buying a home by putting a bigger down payment on a home, paying cash or focusing on paying off their existing mortgage, says Burton. Related Articles:Why debt management?5 ways to cut debt now2010 Frugal Living GuideSave money on groceriesRelated Links:Ways to dump debt in 2010Debt pay-down calculatorBuilding your emergency fund4 dumb financial moves advertisement
If you have to plug into the credit grid every time you need to make a big-ticket purchase, you won't be off the grid for long. Instead, start a replacement fund for big-ticket items well ahead of when you'll actually need one, says Burton.
For example, once you've paid off your car loan, instead of going out and financing a new car, drive your current vehicle until the wheels fall off and instead pay the amount of your old car payment into a savings fund for a new car.
Seriously committed debt haters can even apply this logic to buying a home by putting a bigger down payment on a home, paying cash or focusing on paying off their existing mortgage, says Burton.
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