debt

7 savvy steps to escape the credit grid

Save for big-ticket purchases
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Save for big-ticket purchases

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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