As we all know, it is easier to avoid things that cause problems than it is to try to fix them once we are already there and debt is no different
. If you have debt, you are not only repaying money you have already spent but you are also repaying the interest that is being charged on that money. And today, interest payments can amount to a large percentage of the payment especially if you are only making minimum payments.
Avoiding debt is not really that difficult. It is as simple as not charging things on credit cards and paying off what you charge each month. Not must of us will have debt in the form of a mortgage and many of us may have student loans. These types of debt are considered good debt, if there is such a thing. Hopefully, over time your home will increase in value and you will have an asset worth more than you pay for at the end of the mortgage repayment period. As far as student loans go, they are going to help you increase your earning potential and will also pay for themselves in the long run.
Credit card debt, on the hand will cost you a great deal of money if you have it for any length of time. Most things that people charge on credit cards are not necessities and if this is the case and you cannot pay the balance each month you are throwing money away. Spending money on items that are not necessities should be planned for and the money should be saved in advance. If you buy something on credit and have a large balance that you are repaying through monthly payments, you will pay for the item many times over.
Debt can be debilitating and can cause problems in many areas of your life and avoiding it is the best way to manage it. If you do not incur credit card charges, you do not have to worry about where the money is coming from to repay this money.