How To Avoid Getting Yourself Into Debt

by : Adrian Adams

Whether you listen to the radio, use the internet, or watch television, you will see advertisements where companies are claiming to help you get out of debt. In fact, we are often bombarded with these advertisements from companies claiming that they are the only way to seek relief. Yes, debt is horrific experience that many individuals have to go through. With that said, it is also important to mention that debt is a problem that is completely preventable.

One of the best ways to avoid getting into debt is to not spend money that you do not have. This involves not using credit cards. Most of the Americans facing debt are in their predicaments because of credit cards. Credit cards are easy and convenient to use, but they are, essentially, financial death traps. Paying for all purchases with cash, checks, or debt cards is one of the easiest ways to avoid debt.

As nice as it is to know that avoiding credit cards is an easy way to stay out of debt, many individuals just can't part with the cards that they do have. If you are one of those individuals, it is important to familiarize yourself with proper credit card use. Proper credit card use is another one of the many ways that you can avoid debt. For example, only carry one credit card or choose a card with low interest rates and no annual fees. Also, be sure to pay your credit card bill on time. If you can pay more than the minimum balance, even just a few extra dollars more, be sure to do so.

Creating a budget for yourself is another great way that you can go about avoiding debt. Unfortunately, many individuals mistakenly believe that budgets are only a way to get out of debt, not prevent it. This is not true. You can use a budget to account for all needed expenses, such rent or mortgage, car insurance, groceries, and so forth. If you aren't in debt right now, you will see a gap in between what you make and what you spend. What you will want to do is save that money.

Saving money whenever you can is one of the easiest ways to stay out of debt. Although debt is often associated with credit card use, there are other ways that debt can accumulate. For example, debt may come from unpaid medical bills, utility bills, and loans. Having a bank account that is filled with excess, money is a great way to stay out of debt. For example, should you ever find yourself faced with a hospital stay, the money that you saved and didn't spend on unnecessary purchases can be used to pay your bills, essentially keeping you out of debt.

Highlighted above were just a few of the many ways that you can go about avoiding debt. An additional tip just involves using your best judgment. If you cannot afford to buy something without a credit card and if you don't anticipate being able to pay for that item in the near future, it may be best to just keep on walking.