7 Things You Should Never Get into Debt for ...

One of the things you should never get into debt for is going on vacation. However much you need a break, it's never worth it if you can't pay for the trip up front. Put it on your credit card, and you'll end up paying a lot more for the vacation. It's only worth using your credit card to pay for the legal protection, and only if you can pay off the card in full straight away.

Just because everyone else seems to have a tablet and the latest smartphone doesn't mean that you should get one. We've been fooled into thinking that these items are essential, which is far from true. But if you want them and can afford it, that's up to you. You just shouldn't get into debt to pay for them.

If you have to get into debt to meet your bills, you're in serious financial trouble and should seek immediate advice. Your outgoings clearly exceed your income, and unless your income quickly improves, things will only get worse. Always ensure that your essential bills are paid before any frivolous spending.

Taking on a debt to buy a car may be advisable if you absolutely depend on having one. But you should look for a favorable loan rate and be sure that you can meet the payments. Also minimise the debt as much as possible by setting a sensible budget. Don't buy a brand new car with a loan. You absolutely do not need a new one; a used vehicle will do you well if you choose your vehicle carefully.

It's really foolish to get into debt for the sake of a wedding, however much you dream of a lavish ceremony. It has been known for people to still be paying off the wedding by the time they get divorced! You can have a great wedding even on a low budget, so scale down your ambitions and only have what you can afford to pay for in cash.

When you buy or rent your first home, it's so exciting that you want to create the perfect home. But don't rush out to buy all new furniture and appliances that you can't afford. Buy budget or second-hand, and save up so that you can gradually replace each piece as they wear out.

Finally, even for the holidays, remember that it's not worth getting into debt to buy gifts, not even for your kids. If you're strapped for cash, stick to buying token presents or prune your gift list right down. Nobody needs or is entitled to lavish gifts.

It's hard to buy a home without a mortgage; this is one example of what's considered 'good' debt, as it provides a useful asset. But few things are worth getting into debt for, so think very carefully before taking on any debts. Have you ever spent far too much on Christmas and spent months paying it off?