Tag Archive: avoid debt

7 Tips on How To Avoid Getting Into Debt


Taking a debt can be tempting. However, debts cannot only lead to conflicts between you and your creditors but can also translate to high-interest rates making you pay much more money than you took. Debt Help & Advice will help you in managing your debt.  It is, therefore, important to avoid debt as much as possible.

How to avoid getting into debt

1. Avoid unnecessary spending

Always come up with a budget of the items you require. Write down a list of these items in their order of priority with the most important item appearing on top of your list. You can then allocate money to them. Make sure you purchase the most important things first. If your money is not enough for all the items, buy the rest of them using your next salary. Avoid spending money on items outside your budget.


2. Make cash payments whenever it’s possible

Avoid using your credit cards when you have cash at your disposal. This helps you to avoid accumulating debt and avoiding a bad credit score. Taking credit when it is not necessary could deny you the chance of obtaining credit when you most need it.

3. Don’t buy what you can’t afford

Make sure to buy what is within your means. Understand your financial position and avoid living an expensive life. If the amount of money you are earning cannot get you a particular item, do not take a loan to afford it. Instead, you can save for a certain period and purchase it when you have the cash.

4. Make a comparison of prices before making a purchase

Similar items may have different prices in different stores. Going for window shopping would help you establish the best prices. If the items in these stores have the same qualities, buy from the cheapest seller. This can save you a substantial amount of money in the long run and prevent you from going the debt way.

5. Avoid having more than one credit card

Having multiple credit cards can lead you to spend more. This is because you may see each credit card as a chance to spend. Applying for multiple credit cards at the same time could lower your credit score. This is because it may be interpreted as a desperate measure to acquire more debt. Different credit cards may also require different settlement time leading to confusion and possible default.


6. Don’t carry along money you don’t need

Carrying only the amount of money you need for the day will ensure that you do not spend money carelessly. Sometimes we buy things not because we need them but because we have the money. However, having only enough cash can ensure good use of your money and prevent you from going the debt way.

7. Opening a savings account

Having money in your savings account would be of great help in times of an emergency. You should, therefore, spend a portion of your money and transfer the rest of it …