4 Tips to Stay Out of Debt

Stay out of  Debt

Debt is like any other trap, easy enough to get into, but hard enough to get out of.
– Henry Wheeler Shaw


You are a young graduate and you have landed on your first job with decent pay. You have also acquired your first credit card. You are on top of the world. Wait, before you spend your hard-earned money consider the following points to avoid getting into debt:


1. Spend within your budget: Curb your temptation to spend on what you want. You have worked out your monthly income and expenses including setting aside an amount to save. You know how much is left for you to spend discretionarily. Keep to the limit

2. Credit card: Use your card like your cash. For each amount you charge to your card, you have to put aside the same amount to meet payment when you receive the statement. Don’t think that you can pay the minimum amount. Further spending plus the interest charged will snowball the amount beyond your means to pay. Bankruptcy is the outcome.

3. Your creditworthiness: Establish and protect your creditworthiness by paying your credit card statements promptly and fully to demonstrate an impeccable credit status. It helps when later in life when you apply for other loans.

4. Zero-interest installment plan: You may think that it is a great idea when a credit card issuer offers you up to 36 months to purchase big-ticket items without interest. You still have to factor the monthly installments into your monthly spending. If it is out of your budget, don’t sign for the item.


Live within your means and stay out of debt, it is much more difficult to be in debt and get out of it. According to Thomas Jefferson, " Never spend your money before you have it."