5 Easy Ways to Stay out of Debt

5 Easy Ways to Stay out of DebtThe amount of debt that the US has is over 16 trillion dollars. That amount is ridiculously high. As I previously posted I have some debt that I am working on paying off. In the next few months, I will go into overdrive and work even harder to pay it off. I know that I’ll be able to make it happen. I just have to stay focused.

Unfortunately, I know that I’m not the only one in debt. You might be in debt and is having a hard time coming up with a plan to pay it back. In today’s post, I want to share with you five easy ways to stay out of debt.

Create a budget

Creating a budget is very important. A budget is a spending plan that shows you where your money goes. If something is not in your budget don’t buy it. It might be hard to get used to a budget at the beginning, but if you are focused, it will work. There are multiple apps out there that can help you with your budget. One of my favorite apps is Mint. I wrote a review about it here.

Pay bills on time

Paying your bills on time helps to keep you out of debt and it also helps your credit score. At one point I used to pay several bills late each month. Most of those bills were collecting interest and late fees. My finances were not a pretty sight. I took the time to go through each bill and I wrote all the due dates in my planner. Then I contacted the creditors that I was behind on and started paying them. It took me a few months, but I was able to get current on all of them. If you’re in a similar situation, I want you to know that you can on track too.



Don’t spend money you don’t have

Sometimes people buy stuff even if they don’t have the money for it. Whether it’s using a credit card too much or allowing your checking account to become negative, don’t spend money you don’t have. I have made mistakes in the past by over spending. Having to pay your bank or credit union an overdraft fee is not fun. I’m not 100% against using credit cards. I just think that people should use them in moderation. People get in a lot of debt and they truly don’t need to be in it.

Forget about keeping up with the Joneses

This one is tied into #3. I’m sure you have heard the phrase “Keeping up with the Joneses”It means that you are trying to match someone’s social status.  Don’t do it. The Joneses are usually broke. You don’t have to be like them. Don’t spend money that you don’t have. Nothing positive will come out of it. The people that you are spending to impress don’t give a damn about you anyway.

Avoid credit cards or loans that have high interest

When applying for a credit card or loan, you should make sure you choose the one with the lowest interest rate. If you can’t pay your credit card off each month, the low-interest card is the best option. I hate paying interest, but I’d rather pay it on a credit card that has an interest rate of 12% instead of one with 22%. The interest will add up quickly. Luckily, I paid off my credit card debt earlier this year.

You’ve just read 5 easy ways to stay out of debt. Paying attention to your money. Don’t get caught up trying to be like someone else. Debt is a huge problem for millions of people in this country right now. If you can, try not be like everyone else. Strive to be debt free. I am looking forward to the day when I can say that.

What other ways do you know of that can help people stay out of debt?

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  1. Budgeting is obviously important. You need to live within your means if you ever hope to get out of debt – and stay out of debt. Good tips, Jason.
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