How can you stay away from Debts?

Today when USA’s budget plans are out in the open, everyone knows how the government is in a huge debt without any possibility of paying the money back. This is a situation in which USA is not alone. Many other countries also find themselves in the same boat. If we however narrow the condition of debt to each and every individual, we would not be surprised to see that the situation here too stands the same.

Who is not in debt nowadays? With the market economy being lost through an unfortunate series of recessions, it is no surprise that people are turning to borrowing money from financial firms and the banks to survive. The cost of living is much higher nowadays than before, and we have to somehow make it. Do you need shelter for your family? You need a house. So you must apply for a mortgage loan. Do you want to start a new business? So you should ask for a loan. And then when you are in debt to several lenders, you start to lose the fight under all the financial pressure.

The trick is to realize that despite the various reasons in today’s financial infrastructure which have pushed you into debt it is possible to live a debt-free life. Yes, it is not a magical way; all it requires is a lot of patience, self-control and “money smartness” which implies the ability to be able to handle the inflow and outflow of money properly. There are many people who are completely debt free and they stand as your inspiring models. So what can you do to stay away from debts?

Whenever things go wrong, and you need money, do not think immediately that debt is your only choice. Sometimes it is, and most of the times it is not. First try to think if it is possible for you to work extra hard or get another job in order to make that much of money to meet your needs. And if possible you can also cut down on your expenses to save more dough. Whatever you do, do not start with debt as your first option. Debts should be the last way out, only of the first two methods fail.

Think before you get your loan. Are you sure that what you want is the thing that you need? Sometimes you need to start a business for which debt is inevitable. Such a debt is a good debt. But if you want the new stylish car like the Porsche that you had seen in the showroom, and for that you go into debt, it would not be a smart move.

You do not need to think twice. Just think wise and you will find it easy to stay away from debts.

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