Don’t Want Debt? Here Are Some Tips

Scared of having bad credit? Then avoid debt in any form. Do this by transacting in cash to cash basis all the time.

This means you should always have cash at the ready and not use a single credit card. Because once you do, you automatically gain debt notwithstanding interest rates. So forget about signing up for a plastic. Have a debit card or ATM card instead.

But aside from credit cards, loans such as mortgage and auto-financing also cause debt. Now it may seem impossible to avoid debt when you need a house or car, but it can be done. It may be hard, but it is possible.

When it comes to home ownership, don’t force it if you can’t afford it. It would be simpler to just take out a loan and pay for the mortgage monthly, in return to having your own roof. But if you’re adamant to steer clear from debt, mortgage is not an option. Renting is.

Have a better income and calculate the apartment or room you can afford. Make sure that rent does not get in the way of your debt-free existence. If you are single, a room or small apartment will suffice. If you’re a family man or woman, seek for an affordable home for rent or a larger apartment.

Maintain a frugal lifestyle in terms of your daily expenses. When you start wanting far too many things, your income becomes deficient. Eat at home, buy in bulk, find budget-friendly stores and buy sensible home items. Save first then find great deals if kids need something for school, soccer, and what not. Find alternatives to expensive toys and unnecessary video games. Expose them to more fun yet pocket-friendly activities like biking in the park, museum tours, and so on. Be creative and you won’t spend a cent.

When it comes to car, I know it is a crazy idea to just walk. But if you can’t afford it, try public transport. Buses and subways are cheaper options. Live near stations and stops so you won’t have to walk as far. But all year long try and save for a sensible and affordable car.

A debt-free life is undoubtedly reassuring. When you can save as much as you can and not worry about due dates then it’s almost an Utopian existence. But as much as it feels that way, your credit history will suffer. Institutions will want a trace of loan so there’s no way around it but to succumb to debt. But tread lightly around this trap and you’ll be living just fine.