5 Ways On How To Keep Yourself Out Of Debt
It might seem too late or feel overwhelming, but by practicing a few key principles, it’s possible to not only get out of debt, but to avoid getting into it altogether. Here are a few tips on how you can avoid debt and keep your credit rating clean throughout your 20s and beyond
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!
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 R3000-R5000 rands 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!
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
