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Five Tips to Avoid Getting into Debt

Lisett Comai-Legrand

Lisett Comai-Legrand About The Author

Oct 17, 2019 6:40:00 AM

A goal everyone should have for themselves is to stay out of debt. However, staying out of debt has earned a bad reputation for itself as being no fun. The truth of the matter is that there are some practical ways to stay out of debt and still enjoy life!Tips to Stay Out of Debt | How to Avoid Debt | Best Ways to Stay Out of Debt | First Alliance Credit Union MN

Tips to Avoid Going into Debt in the First Place:

There are five practical tips that can help you avoid debt. Some pieces of advice may not be as easy to follow as the others, but once you get the hang of them and integrate them into your life you will have a plan that can help you gain control over your finances.

Avoid Going into Debt by Making a Budget

Keep track of your spending for at least two months by keeping a log and collecting the receipts to monitor how you are spending. Separate your spending according to categories like food, entertainment, etc. Once you have gathered that information, combine it all with your monthly bills. After that you will have a clear picture of your expenses throughout a month. Before drawing up a budget, you should go through your expenses and see where it is possible for you to reduce the expenses and free up more money.

Create a checklist, make a saving account for the bills, and create an expense item for your food, entertainment, and car-related spending. Anticipate the bill for a month and account for it in your budget. Don’t forget to leave yourself some leisure money. You can enjoy yourself even within a budget.

budgeting calculator

Avoid Getting into Debt by Earning More Income

Does it sound practical to lower your monthly food budget or to put off paying your credit card and apply the money elsewhere? Not really. If you see yourself falling short of cash, then you may want to take on a part-time job to earn extra money, pay the bills, and get your finances under control.

Even if you have a well-developed budget and no money issues, it’s not a bad idea to still make extra money. You can save the money you earn and strengthen your financial position.

Responsible Credit Card Use Can Keep You Out of Debt

If you have good spending habits, then you can certainly take advantage of several benefits of a credit card. The best way to utilize a credit card is to use it for the things that you know you can afford and take advantage of the rewards you get in return. Use a credit card on items that you can cover in your regular expenses and payoff your card monthly.

budgeting calculatorDon’t Spend, Save to Avoid Debt

Saving money for a big purchase is always better than opening up a new credit card or taking out a loan. Though you may have to wait for that item for a few months, if you do not need the item immediately then saving for it will help you get the things you want without getting into debt.

To Avoid Debt DIY You Next Project

Learn how to do the things that you would normally pay someone for. For instance, you can save money by changing the oil of your car yourself. If you want to remodel, you can look for ways to do the project yourself. However, do not take the do-it-yourself approach to extremes. Do the things that are less risky and can be done easily.


Getting into debt can be very worrisome for anyone. There are several ways to avoid going into debt without sacrificing your current lifestyle. Reading this article will help you learn some helpful ways to stay out of debt.