5 ways to avoid major debt
Brian Turner @brianbturner
Acquiring debt is a necessary part of life in order to get ahead. But what if debt is put in place to always keep you behind?
You have a habit of buying things on credit even if you don’t have the money to pay for them. And you believe in the concept of “good debt” and “bad debt.” But maybe it’s better to think of all debt as bad. The idea of debt exists because society believe it’s a requirement.
Debt is the state of owing money. Loans, bonds, notes, and mortgages are all types of debt. It is a burden and when times get tough, debt reveals it’s true terror. The creditors want you to owe them because that’s how they make money.
It’s so easy to get a credit card and be fixated by a credit score. But it’s important to understand why people get into debt and start to imagine a life without it?
Debt is the by product of bad spending habits. And unless you spend cash, it’s costing you money to spend money. You struggle with managing your assets. And this pushes you to a point where your monthly expenses exceeds your monthly income. You use credit to fix the situation and this forces you to feel stuck in a black hole unable to get out.
Shifting your mindset about debt will help you psychologically figure out ways to avoid it. At a young age you witness your parents struggle with money trying to pay off the mortgage, credit cards, and other debt. So you believe this is the norm and you follow down the same trajectory.
You lose your job and the reduction in income forces you to rely on credit to try to get back on track. It’s so easy to use that plastic card to pay for things even when you don’t have the money. You never put away emergency reserves. So the divorce, gambling addiction, and medical expenses force you into needing more debt to survive.
Learning to live with little or no debt is a major key to achieving financial success. The best way to avoid getting into debt at all is to develop the mindset that debt is avoidable. Credit cards, mortgage loans, and car payments are a virtual necessity in today’s society. But minimizing debt exposure is in your best interest. It may seem impossible to pay for things without debt, but it is doable with a plan and a lot of patience.
The clearest path to financial freedom is a life without debt. It’s possible to reach financial freedom, but you first must understand how to avoid being in debt it at all costs. Because once you’re in it, it’s a life full of pain which becomes even more painful when you try to get out. Here are 5 ways to avoid debt.
Pay with cash whenever possible
Use the ATM before you go shopping and see the benefits that include peace of mind and nothing hanging over your head.
Rent your home and own your time
Avoid the maintenance costs and big down payment while enjoying the flexibility and the having to owe anyone for the big mortgage loan.
Pay cash for your vehicle
One of the biggest household expenses is car loans and you believe you have to do it this way. But saving up and paying cash for a car will relieve you of so many worries and so much stress. If you can’t pay cash use Lyft or take public transportation.
Youtube and Take Online Classes
One of the biggest debts we carry is student loan debt. There are a number of things you can do to get educated online versus going to college. Become a student on Youtube and sign up for online classes which you can pay for with your cash.
Become a Minimalist
Minimalism as a lifestyle is a that pares down possessions to only what’s essential. Learn to be who you are without all of the stuff. You develop the mindset that you don’t need so much ‘stuff’ to be happy. And you realize the need for debt is nonexistent.