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
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

Remedy for my big medical bill?

Dear Debt Adviser, I was operated on in an emergency room a couple of years ago for a burst appendix. I was shopping for insurance at the same unfortunate time and had no insurance when I had the operation. The hospital... Read more

advertisement
Partner Center
advertisement

Connect with us