How to Avoid Debt

With all the offers for credit cards and different types of loans, you may think that the only way
people purchase things is with debt. However, there are many ways to avoid debt and purchase
things in cash. Many people in this country are debt free, and they have already learned how to
avoid debt, and you can to by following these simple guidelines.

Avoid Debt by Paying Cash for Everything

The easiest way people get into debt is by charging things onto credit cards. These small pieces
of plastic can get you into big trouble if you’re not careful. If you don’t monitor your spending,
you could soon find yourself in debt and not able to pay your credit card balance. You can avoid
this debt by simply paying cash.

If you pay cash for everything, you know you can afford it. This doesn’t mean you have to carry
around lots of cash. You can use a debit card linked to your checking account and swipe that
every time you need it. Most debit cards can be run like credit and are accepted at most stores.
By using cash you or debit card, you can avoid debt when spending on daily items.

Avoid Debt by Working through College

Another common place people go into debt with is education. You may think it is impossible to
afford and education without student loans, but many people do it, you just have to learn how to
avoid this debt and be debt free.

First, make sure that you select a school that is affordable. You can also look for free money,
like scholarships and grants, which may allow you to go to a more expensive school. Once
you’re in school, look for ways to pay – working a job and going to school is possible as long
as the job is flexible. You could also work on campus through work study, or even be a tutor.
Whatever you choose, understand that you can avoid education debt.

Avoid Debt by Refusing to Finance That Car

When it comes to a car purchase, you may be thinking, “How can I avoid that debt? I need a
car!” My challenge would be, “do you really have to finance it?” You can pay for cars in cash,
and you can get a vehicle for just about any price – you don’t need a new car ever! First, I would
look for public transportation alternatives – bus, train, subway. However, depending on your
location, this may not be feasible.

If you really do need a car, always purchase a used car. New cars lose value very fast, and many
used cars are just as reliable for a lot less money. If you really need a car, you really need to
save. Make sure that you have saved up enough money to purchase your car for cash. It may
take time, but it will allow you to avoid going into debt for your car.

If you follow these steps, you can learn how to avoid debt, which is an essential part to learn how to be debt free.

2 Responses to How to Avoid Debt

  1. […] four years later, the tuition was over $40,000. How can students be expected to pay these fees and avoid debt in the first […]

  2. […] following is a guest post from Corey at How to be Debt Free. He writes to encourage others to avoid debt and pay off debt as soon as possible if you have […]