Debt Avoidance
The Best Way to Not be in Debt in the First Place!

Debt Avoidance = more money in your pocket! The best way to avoid debt is to not get into debt in the first place! Or if you have just got out of debt, don't get back into it.

If there is anything that you can teach your children, nieces and nephews, or friends' children is this lesson:

ONLY spend less than what you have, or as my husband loves to say MAKE MORE MONEY THEN YOU SPEND!

Could you imagine a life with no debt - or at the very least no consumer debt (credit cards, car loans etc.)? That could be possible for you. If you teach the children in your life this simple concept, could you imagine what their future will be like? The power and freedom they would have over their money?

What Causes Debt in the First Place?

It is usually because you have spent money that you don't have. Take a look at your past:  Look at your patterns for spending money. Do you spend money:

• when you are upset?
• when you are mad at your partner?
• when you are mad at your kids?
• when you are feeling guilty over something?
• when you are bored?
• when you are feeling down about your life or yourself?

These days it is really easy to spend money. And it's easy to get money - well actually it isn't money - it is credit or debt.  Banks are sending new pre approved credit cards all the time. Stores are offering credit - Buy Now pay later - schemes all the time. This makes it hard to practice debt avoidance.

We are bombarded by the media with messages of consumerism. That to "fit in" or "to be happy" we must have certain things. Now don't get me wrong. I am not trying to start a tirade over society and what is right and wrong about it. I just want to acknowledge that those pressures are there.

It's keeping up with the Jones' - Do you feel, either blatantly or subtly, that you have to keep up with your neighbors, co-workers, family or society at large? Are you always comparing yourself to others?

We live in a society where everyone wants what they want now and have access to credit to get it now. You may say to yourself - well that isn't me - but think about it. Could you have waited a couple of months for your big screen TV? Did you take a vacation on a go now and pay later scheme?

What Causes Debt in the First Place?

What it comes down to is choice. You make choices everyday. You choose to drive to work instead of taking public transportation. Or to have the the hamburger instead of salad for lunch. You choose to create debt or spend money you don't have by putting purchases on your credit card or using a line of credit.

To ensure debt avoidance, the only time credit cards should be used is if you need it to reserve a car rental or hotel room. The only other time you use them is for convenience, and you are able to and committed to paying them off at the time the credit card statement comes in. That means only charging what you can afford. But if you are prone to creating debt then don't use your credit cards for anything! Use cash instead.

Think about it. If you have debt you end up paying so much more in interest, then it becomes compound interest. So if you purchase an item with money you already have, it becomes cheaper. You only pay what the price tag says. Not what the price tag says plus the compounded interest on it.

So the moral of the story? Always spend less than you make!  And make sure you have 3-6 months savings for emergencies (another way people rack up debt). Debt avoidance is simple. It is just a matter of choice.

Debt Avoidance is the best money management strategy of them all - just avoid creating debt in the first place!

The first step in debt avoidance is to become debt free. Check out the Debt free living page or the calculate your debt page.

Create a money management plan to have power and freedom over your money - Check out our Overall Game Plan.

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