No doubt, you’re well aware that our nation is a debt-driven nation. From the federal government and major corporations, all the way down to non-profits and the lower classes; nearly every transaction in our society involves the use of debt and/or credit. While a financial obligation isn’t an entirely bad thing when it’s paid off on time, it can become a huge problem when handled irresponsibly. Make sure you’re avoiding debt when at all possible with these smart tips!
3 Tips for Avoiding Debt
1. Use a debit card or cash whenever possible. For many people, credit cards will usually land you in debt negotiation with a major lender. Don’t allow yourself to get to this point. Instead, avoid credit cards when at all possible and use cash or debit cards to stay debt-free!
2. Never take on a debt without a clear and defined plan for how you will repay it in full and on time. When you accept a loan or other form of debt without thinking critically about how it will be repaid, you set yourself up for failure. Always be forward thinking with your financial habits!
3. Pay yourself back, interest-free, instead of a lender. If you have money in a savings account, consider spending part of that on necessary purchases instead of taking out a loan to make ends meet. Then, pay your savings account back the same way you would pay a creditor. If you “miss a payment,” it’s not as big of a deal. Plus, you don’t charge yourself interest!
Avoiding debt can be a lot easier when you use these three smart debt control techniques. Plus, you won’t end up going through debt negotiation later on!