When you have families, neighbors, colleagues or friends that are somewhat financially buoyant; it becomes easy to run to them for a raise when out of cash, promising to pay back later. It is through this trend that some people run into debt without realizing it.
The need to borrow in extreme situations could be understandable. However, some people borrow at the slightest opportunity, even on occasions where the situation is not an emergency or life-threatening. Such people can’t help but borrow.
People run into debts for different reasons. The reasons vary from the struggle to meet up to societal standard, start a business or family problems. However, regardless of your reasons for borrowing, there various ways to avoid debts. Such ways include:
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Consider your Source of Income
Paying back debt is usually harder than receiving a loan. Hence, before meeting anyone for a loan, be sure that your earning will be sufficient for repayment. Also, be certain its enough for you to take care of other needs that may arise. This way you are sure not to be borrowing again at the instant you are offsetting a debt.
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Avoid Impulse Purchases
As humans, it is sometimes impossible to control ourselves from buying everything that comes our way. This is one habit that should be extremely controlled or avoided if you don’t want to end up being in debt because you may not have a choice other than to borrow when you eventually see what you need i.e. avoid buying what you see and buy what you need only.
Draw a Budget Plan
It is easy to draw a budget plan but sticking to it is where the problem lies. But the ability to discipline yourself and practice to draw a budget plan and stick to it is one of the sure means to avoid debt. Make a list of your monthly bills, needs and a little other expense, put a stipulated amount and ensure not to spend beyond your budget.
Never Succumb to Pressure
Succumbing to any form of pressure is another way to run into debt. People may at some point or another put pressure on you to do something that requires that you are not financially capable of doing but out of the zeal to please them, you succumb to pressure by agreeing to do those things which may require that you borrow money to meet up their expectations. It may not be anything serious, little things such as being forced to the cinema for a movie or eating out matters a lot when trying to stay out of debt.
Avoid Using Debit Cards (ATM Cards)
Not having a debit card can be a lifesaver sometimes because you stay woke on the fact that you will be left stranded the moment you exhaust all the cash on you. So, another way to stay out of debt is by simply avoiding the usage of your debit card; if possible, don’t have any. There is a kind of comfort that comes with knowing fully well that your debit card has you covered after spending all the cash on you but when that ease is not there, it helps to stay on alert and spend wisely.
There are several other ways to avoid debts, but the thing is, what works for me may not work for you. Therefore, find the method that works best for you and stick to it. Always take a proactive approach and make better use of your time and money.