debt

7 savvy steps to escape the credit grid

Save for big-ticket purchases
Next
7 of 9
Back
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.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CREDIT CARDS WEEKLY NEWSLETTER
Credit cards on a table

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.

Debt Adviser

Any mortgage rights for widows?

Dear Debt Adviser, My husband died and left behind a home with a mortgage payment. My name is not on the paperwork as a co-signer, but I do live in the house. This was on purpose. I was kept out of the mortgage so I wouldn't... Read more

advertisement
Partner Center
advertisement

Connect with us