The best way to avoid the pressure from creditors and lenders wanting to know where their money is, is to not borrow from them in the first place. However, some debt, like a mortgage, may be unavoidable. It is the other, consumer debt that you want to avoid. That can be the thing that can quickly spiral out of control, especially if you are using high-interest credit cards or payday loans. So here are some ways that you can avoid debt, especially the high-interest kind of debt, so you can be in control of your money.
- When you stay within spending limits, then it is going to help you keep on track. When you keep on track, you will avoid debt. It really is as simple as that. Stick to a budget, put money aside, and only spend what you have coming in.
- Tracking your finances is important, especially if you are likely to just spend money without thinking. So use apps or sites to track how much money you have coming in and then how much goes out. If you’re employed, then looking for a check stub maker could be a good idea to check that what you are getting paid is what you are owed. The small things are going to keep you on track.
- If you only use cash, then it can stop the mindless spending that can come with credit or debit cards, especially when they are the contactless options. When you don’t have to enter a pin, it can be so quick you barely register that it was cash spent. So use physical cash in order to stick to a budget. If you go to a store to get groceries, for example, you have to stick to your budget or you won’t be able to pay for it.
- If you don’t really need something, then don’t get it. That isn’t to say that you can’t get new things in life. But perhaps having a ‘sleep on it’ rule can help you to avoid impulse purchases. If you think about it, budget, and then go back for it, then great. But just impulse buying and putting it on a credit card is not the way to go.
- Though it is best to deal in cash, you should track your bank balance regularly. You will need to check that direct debits and bills that are taken out of your account are what you are expecting. If they aren’t, and you aren’t checking regularly, then it could lead to bank charges if you go into an overdraft.
- If you borrow money on a credit card because of a good deal when opening the card, then make sure you have budgeted to pay the card off in full. When paid off in full, there can be some benefits to having them. But as a rule, avoid them to avoid the temptation.
Have you got anything else that helps you to stay out of debt and avoid unnecessary spending? It would be great to hear what you think.