The easiest way of dealing with debt is by avoiding it. By not entering into a problem, you can avoid the trouble of finding a solution for it. But avoiding debt can be hard, especially if you have dreams of buying a house, going to school, or owning a business someday. Our Houston bankruptcy attorney has written a list of tips you can follow when trying to keep your life as debt-free as possible. By following these simple tips, you can avoid unnecessary debt and easily manage the debt you inquire.5 Ways to Avoid Debt:Pay with cash as often as possible - Visuals help many people interpret abstract concepts, especially money. Spending money with a credit card or by writing a check can be easily disregarded or forgotten. Paying with cash can have a bigger impact, since you will be able to physically see your amount of money decrease with each purchase. Plus, carrying cash can give you a cut-off point-when you run out of cash, you can't buy anything else.Avoid impulse purchases - When spending money you should be planning about where your money is going. Planning on how you will spend money and what you will buy can help you cut out the cost of stuff you don't actually need or want. Doing this can also help you avoid deals that may seem good at the time, but actually hurt you. Signing up for offers like "pay later" or "interest free" can postpone debt, not solve it.A smart shopper is a happy shopper - Doing your research can save you tons of money in the long run. Before making any big purchase, you should research and compare costs of various products and locations. Knowing and understanding what you want can not only help you avoid spending money on a something that doesn't work for you, but you can also save lots of money by finding a location with a lower price than others. Doing your research can help you save money while still spending it on what you want.Look for low rates - If there is no way to avoid debt, you should still enter into it as carefully as possible. When borrowing money, find a lender that offers a low interest rate. Many people get stuck in debt because of high interest rates and not being able to keep up with the increase in debt. You should also apply this rule when getting a credit card. If you sign on to pay high interest rates, you will end up paying a lot more money for your purchases than you should.Keep track of expenditures - You should always keep track of your expenses. Not keeping an accurate account of how much you have and how much you have spent can easily lead to you spending more than you should. An easy way to help you keep track of your expenditures is to only allow yourself two credit cards at a time. Paying for two credit cards and keeping track of their expenses is much easier than many cards with many different rates or payment days.If you are struggling with debt, contact our Houston bankruptcy lawyer at Guzman Law Firm for a free case evaluation!
