It’s a good thing to try to avoid getting into debt, especially if you are young and just starting out on your own! It’s easy to quickly accumulate bills and debt to pay off, and having that stigma hanging over your shoulder is no way to live! In my own struggle to pay off debt, I’ve discovered a few ways to avoid getting into more debt. Please keep reading to discover my top ways to avoid getting into debt!
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1. Don’t Have a Credit Card
The easiest way to avoid getting into debt is by not having a credit card. Sounds simple enough, but it’s hard to toss those credit cards out the door! Some people like to have a credit card for emergencies only, but that’s up to your own discretion. You would need to exercise the self-control not to use it unless it was an emergency!
2. Never Take out Loans
Something I’ve learned is that most places these days will let you take out a loan for nearly any large purchase. Vehicles, electronics, appliances, etc. are easy to buy with a loan in your name. While it’s convenient and easy, you are then stuck with more debt. So save up for any new item you want or need, and pay for it outright. Then you have no debt to pay off!
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3. Have a Savings Account
If you don’t already have a savings account, now would be the time to open one. Even if you can’t afford to put very much money into your account per paycheck, you can put aside a little bit. Every penny adds up! Try to have a cushion of at least $300-$500 dollars in your account as a minimum amount. Emergency car issues, medical bills, or insurance fiascoes could arise at any time, and you will be covered if this is the case.
4. Pay Bills on Time
Did you know that by paying your bills on time or even before they are due, you can avoid getting into debt? So many people put their bills off till the last minute, after they have spent money on leisure items. By then, they are forced to put their bills on their credit card, creating more debt. Your best bet is to pay your bills on time, then spend money on leisurely items!
5. Look for Best Value
Anytime you go to make a purchase, whether large or small, get into the habit of looking for the very best value you can find! Any time you can save money, take that chance. That’s more money you can put towards paying off debt, and who knows? If you find a bargain on something, you might have enough savings to buy it outright instead of putting it on a credit card or taking out a loan!
6. Limit Your Shopping Trips
Here is one tip that has been the most effective for me. I love to shop, and I always find something to buy nearly every time I head out the door! The best cure I have found for this problem is not going shopping all the time. I try to limit my trips to the mall, and even grocery shopping. If you can get a handle on your shopping, you can avoid getting into more debt.
7. Learn to Budget
Budgeting your finances and expenses is the top way to save money AND avoid getting into more debt. If you can learn to live within your means, you won’t need to charge stuff or take out loans. It takes practice, and discipline, but it CAN be done!
Debt is never fun, but it’s something that almost every single person faces at one point or another in their life. If you can try to stay as debt-free as possible, you will have a much easier time budgeting and saving your money! These tips will help you avoid getting into debt. Do you know any ways to avoid getting into debt?
Comments
Kathia: DAVE RAMSEY!! Take tips from this man everyone! :) he is amazing! :) follow his baby steps to get out of debt and you'll not only be debt free, but you will also be smarter about your money!
Raffi: I agree that you shouldn't take out loans for frivolous things (I'm pretty sure you'd get denied if you took out a loan for something silly anyway) but many people have student loans and that's just unavoidable if you want to get an education but don't have the means out of pocket to do so. Even the president had student loans and just recently finished paying them off!
April: @Kathia Yes, Dave Ramsey is awesome. I haven't done his FPU, but I've read Financial Peace and I listen to his podcast read daily tips from him. He helped me get started on investing money we were sitting on. I've always been a saver. I have some debt, most is super low to no interest and I keep to build credit. I have built a very nice safe cushion savings all by listening to Dave. These are good tips too, mostly common sense lol, but we can all use a little reminder. :)
Olivia: Thanks maybe I should share this with my mom cause she need help could she messing up my damn name
Dominique: I use to be a bad shopper as well! but I finally figured how to actually save my money! ive done good researching ways, even treating myself to a.trip to Hawaii. I finally can affrod it! I make a food list plan my dinners for a week as well as lunches I pack for a week for work. Gets tiring but I do save Home cooked meals are healthier, then I started freezing meals to use for next month meals. limit myself to an amount for the month for spending money. Always pay off tge credit card no debt. been a long journey but these articles have taught me discipline!
Charzetta: These tips are great, however if you are trying to establish credit for future purchases then a credit card or some kind of revolving account is essential, you just have to be disciplined enough to keep purchases at a minimum and pay them off at the end of each billing cycle
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