How to Avoid Debt Accumulation We all have debts. If we get a home or investment loan, we're indebted. Each of our credit card debts which might be outstanding may also be deemed as financial debt. Our goal is usually to lessen those debts and steer clear of accumulating debt. In this post, we will talk about some techniques to help you decrease and prevent amassing loans and some other debts. Help reduce mortgage by following these suggestions: 1. Lessen interest rates by dropping lump sums whenever you can. It also cuts down on the time period (if you need to spend the money for mortgage loan). 2. Pay your monthly mortgage more frequently. If you pay every two weeks (which is equivalent to half-a-month’s repayment) you'll have paid an additional monthly payment each year. 3. Create a money buffer. Home loans can help you tie-up any savings account to your mortgage and make use of the total amount in order to reduce the interest that's to be paid. Retaining the $5,000 in an offset account (for a $300,000 bank loan) can result to any reduction of time period by a couple of years. This allows one to save more than $33,000. To prevent acquiring financial debt: 1. We have to be strong in resisting the urge to buy things.. Avoid products which are generally too expensive. 2. Avoid interest rates and late fees by paying your bills on time. It’ll help to set up automatic payments through your bank. 3. Save for emergencies. This will help you pay out your loan and avoid fees should there be an emergency or if the interest rates shoot up.