Plan Ahead with Money
After debt consolidation, you might have a little bit of extra room in your budget. You could use it to improve your lifestyle, or you could save it for things that you know that you will need. We all have events in the year that cost us extra money. Most people need to come up with money for Christmas gifts, car registration, and other items on an irregular basis. Utility bills vary throughout the year as well. Plan ahead with your money, so that when these periodic bills do show up, that you'll have the money set aside to pay for them, and you won't be tempted to use a credit card.
Set Aside Money for Emergencies
In addition to the periodic bills that show up at various times of the year, emergencies can occur unexpectedly. Whether the car has trouble, the stove stops working, or the plumbing backs up in the kitchen, there are times when you have to spend money on repairs that you weren't planning on. If you save some of this extra money, you will be better prepared for when these emergencies come. Most emergencies will cost you $1000 or less, so it's a good idea to have at least that much set aside.
Pay Cash
Even if you can get airline miles or other goodies by using your credit cards, it's a good idea to use cash whenever possible. Most people tend to spend 12 to 18% more when they use credit cards, even when they pay their bills on time. Plus, when you pay with credit, you always have the temptation to not pay your bill in full every month. This can lead you back into the path of debt that you have been trying to climb out of.