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

What are some of the things you should never get into debt for? Debt can be worth taking on for two reasons: if it's for buying a house or getting an education that will help you earn more in the future. But too many people get into debt buying things that they definitely do not need. Here are some things you should never get into debt for …

Thanks for sharing your thoughts!

Please subscribe for your personalized newsletter:

1. Vacations

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.

2. Gadgets

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.

Frequently asked questions

3. Bills

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.

4. New Car

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.

5. Wedding

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.

6. Furnishing Your First Home

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.

7. Gifts

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?

Feedback Junction

Where Thoughts and Opinions Converge

@laraw I have to disagree! I know plenty of people who have purchased new cars and still have problems with it!! A second hand car can run perfectly! Plus, once you save up to buy the second hand car, it's legally yours!! But with a new car, if you finance it, it may take you years to pay off! It just about being sensible! If you prefer to have a new car, you can save up for it!

You should also not lend money to people if you are unsure that they will be able to pay you back. And definitely do not lend money that you can't afford to lose.

Also, you not get into debt because your significant other wants to spend money on frivolous purchases that he/she can't afford to pay back

^ new cars suck, not made to last and lose value right after you drive them off the lot. New cars aren't any safer, haven't you seen all the recalls, why cause their made like crap, outsourced crap

Buying a second hand car leads to second hand problems - people get rid of their cars for a reason !!! Pick the cheapest new car - may not be a great badge and may be tiny but it's new comes with a warrantee and will cost you less and new cars are more economical and safer. I would rather have this useful debt which will save money in the long run not to mention your life !!! Never buy second hand it's not worth it.

Thankfully I can't say I've ever been or had debt. If I can't afford it in cash I won't buy it, I think it's silly getting credit for something you can't afford. Saving up is something that has been installed in me from being young and being happy with what you have.

Categories