5 Ways to Avoid Debt

In today’s world, it’s easy to buy things that we can’t afford as long as it stays within our credit card limit. Just swipe your card and tada! That thing you’ve been wanting to have is all yours. Buy now, pay later. You came home super happy, but a few weeks later, you’re stressed. You have your monthly bills, and on top of that, you have debt. Can you pay your balance off?

If I had a choice, I will not get a credit card no matter what because I don’t like having debt. I’ve heard a lot of horror stories, and that scares me. However, it is necessary to build your credit because it will be helpful when the time comes that you will need it for large purchases, such as buying a house and a car.

Over the last three years since I applied for a credit card, I have gotten comfortable using it. Thanks to the advice I got from my family, friends, colleagues, and the internet! So for today’s post, I will share some ways I avoid debt. Note that I am no expert, and these are based on what I learned from them and my experiences.

Save money in advance.

If you want to buy something but you can’t afford it, save money for it. Yes, it will take some time, but this will make that purchase more meaningful because you are working hard knowing that you will save some of your hard-earned money to buy that thing you’ve been wanting to have. You will even learn to value it and take good care of it more. It will not only make you feel fulfilled, but it will also save you from getting stressed from debt. It will also give you time to think about it clearly, and you will find out if you are just getting swayed.

This is probably one of my favorite methods for buying large purchases. I grew up learning about the importance of saving money. If you want something, save for it. Don’t rely on credit cards. I believe that anything you want but don’t need can wait.

Avoid impulse buying.

When you saw something you want, don’t purchase it immediately. Go home and think about it first. Allow a day or more to assess yourself. Do you really want/need it? Think long term. Do you still see yourself using it after 3 months? 6 months? 1 year? If you still want it, then buy it. If it’s too expensive or over your spending limit, think about the previous tip.

Avoid going beyond your spending limit.

Spending beyond your limit will not only hurt your credit score, but it will also charge you fees. Also, don’t assume that you can spend your entire limit or close to it. If you do, you will also hurt your credit score. So get in the habit of spending less. Cutback on purchasing nonessential items and prioritize your needs. They say that if you can’t pay for something in cash, that means that you cannot pay for it when you use your credit card. Again, think long term. I’m sure you don’t want to owe money that will be hard to pay off later.

Pay off your balance on time every month.

Who wants to pay for interest? Let me guess, no one, right? The amount of money you pay for interest can be used to buy on other crucial things, or if that turned out to be extra money, then you can save it or use it to buy the things you want. It is also one reason I don’t want to use credit cards. I treat each penny I earn as big as the other coins and bills. Surprisingly, I learned that it can be avoided by paying off your balance on time. It is a challenge, but it would be easier to pay for it if you don’t spend more than you earn.

Now, I want to emphasize the importance of paying on time. If you miss your due date, even if you pay off your balance, you will still lose money. Why? They will charge you more or less than $30 depending on your bank, and you will also pay for interest. Can you imagine how much money you’ll lose? You will not only throw away your hard-earned money, but it will also hurt your credit score. So make it a habit to pay on time and pay it in full as much as possible. Set reminders and remember to always spend what you can pay when you use cash.

Limit the number of credit cards you have.

It is tempting to avail that credit card from your favorite shop, right? Most especially if it comes with a promo where you get 20% off your first purchase. Aside from that, there are a lot of perks, but the thing is, can you manage all of them? If you do, then that’s good. But if you’re not careful, you might spend more because every debt you have is distributed across your cards, and they all have different due dates. You might lose track of how much you have already spent, and the next thing you know, you have spent more than you can pay. That will make it hard for you to pay off your balance on each card, which means that you will have to pay more because there will be interest.

Moreover, choosing the right credit card for you is essential. Educate yourself about the different types of credit cards that are offered before applying and choose the one that will give you more benefits. As for me, I have chosen two credit cards from my bank: cash rewards and travel rewards. I earn cash backs on both, and it doesn’t have an annual fee, so I love it! All I need to do is to handle it properly and pay on time to avoid getting charged for interest and late fees.

Bonus Tip: Build emergency fund.

In case of emergency, it is important to have an emergency fund. What is this fund? It is a fund that can cover your expenses during situations when you badly need it, and you don’t have enough money to cover for it, such as losing your job or getting sick. I will discuss more on this matter in my upcoming post about saving money.


Having a credit card has many advantages, and we can get the most out of it when we know how to manage it. I want to emphasize the importance of this because there will come a time that we will have more responsibilities, so it is better to start the practice now. We cannot avoid having debt, but remember that it is possible to minimize it. It will not only save us from stress, but it will also be helpful when we are handling a large amount of debt from emergency or important situations. If that time comes, we will not worry about having too much debt, and we will only focus on our bills and that specific debt.

How do you avoid or minimize debt? Do you also do these tips? Do you have a different approach? Share it with me. I would love to learn more strategies.

[Featured Photo | First | Second | Third | Fourth]

35 thoughts on “5 Ways to Avoid Debt

  1. Yes! Don’t 👏 go 👏 into 👏 debt! I go by “If you can’t buy it twice, don’t buy it.” And having an emergency fund is so important! Such a good topic. It’s not something you want to put off thinking about until you’re older or run into the problem. It’s good to build good financial habits at a young age!

    Liked by 4 people

    1. That’s so true! It is better to start practicing this habit now to avoid having problems with debt later. Also, yes!!! I love that quote that you go by. It’s a great way to prevent ourselves from getting swayed and buying things that we can’t afford. Such a great idea! Thank you so much for sharing, Chloe! 💖

      Liked by 1 person

  2. I can totally relate!

    ‪I’m holding on to this principle of don’t shop hungry. ‬

    ‪I always make a monthly budget & shoping list’ help me avoid impulse buying. And knowing the difference between your wants and needs. ‬

    ‪Thanks for sharing this. It’s helpful.😊

    Liked by 5 people

    1. Yes!!! I love that! Shopping lists are a great way to control ourselves from buying too much and buying things that are not needed. I also couldn’t agree more with having a monthly budget! It keeps everything on track and organized. Thank you so much for sharing, Kim. 💖

      Like

  3. Really great tips! What helps me most is making sure I have a weekly/monthly budget and making sure I don’t go over that budget unless I absolutely have to. Like you mentioned I also avoid impulsive buying- you think you’re just spending a few bucks on impulsive buys but that’s not true. When you add everything up it adds up to a lot.

    Liked by 3 people

    1. That’s so true! I love that you mentioned how small purchases can add up to a lot. I also couldn’t agree more with having a budget. It prevents us from buying too much, and it helps us prioritize our needs before we can get our wants. Thank you so much for sharing this, Pooja! 💖

      Liked by 1 person

  4. These are great tips! I’m in a similar mindset to your re credit cards – I think they’re good for building a credit history for sure, but I do they can encourage unhealthy spending habits that can get people in trouble. I think this tips are really useful xx

    Liked by 3 people

    1. That’s right! Having a credit card tempts people more into getting in the habit of buying things that we can’t afford. Yay! Thank you so much, Mia! 💖 I’m so glad you find these tips useful.

      Like

  5. This is the exact tip I wished someone gave me in 2005.

    I literally thought it was free money! And I was gifting people big gifts like crazy! Lol

    Frankly, for me, it’s become a necessity because online payments using debit cards is not recommended (but now that apple pay is around, credit card online shopping can kiss me goodbye) and we need it when traveling… BUT, we must make sure we understand being tied to a credit card… the interests and fees that come along because it’s no joke.

    I totally got Becky Bloomwood-ed in the past because I didn’t have a clue at all, you could have come 15 years earlier 🤣🤣🤣 but now I am behaving well with cards… it’s been 5 yrs since 😍

    Liked by 5 people

    1. Hahaha you are so sweet and thoughtful, Ate! 😍 They are so lucky to receive those gifts from you. And that’s right! Paying online using debit cards is not that safe and yes to apple pay! Now, it is much easier to have smooth transactions without having to worry about interest and other fees.

      I’m glad you were able to handle it now because in all honesty, having a credit card is tempting us to shop more. 😅

      Liked by 1 person

  6. You wont believe how much your post influenced my day yesterday! I started my day watching Confessions of a Shopaholic and transfered my Confessions of a Shopaholic series to my Kindle 😂

    Liked by 1 person

    1. Yay! How was it, Ate? I just watched the trailer after reading your comment, and it sounds interesting! I immediately wrote it down on my never-ending to-watch list. 😄

      Liked by 1 person

    2. It’s a romantic comedy. I have read the book way back and when the movie came in, I told myself, “this is definitely me” I was a shopaholic — I got worse before I got better. I used to buy a lot of clothes, purses, and shoes anywhere and everywhere… then I developed some taste and only bought designers — that killed my budget exponentially… I don’t know how I stopped, perhaps, maturity? old age? poverty? lol… i dont know how I was able to stop… I think it’s the realization that all things perish and it was not at all that important…

      Liked by 1 person

    3. That’s so true Ate! Over time, these things will lose their value. When I started working, I became a shopaholic, too. Buti na lang I don’t have a credit card at that time but most of my money is spent on shopping. 😅

      Liked by 1 person

    1. I couldn’t agree more with tracking our spending! It helps us see where we spend most of our money and where we need to reduce our spending. Thank you so much for sharing this valuable tip! 💖

      Like

    1. Yes! Saving in advance for me is the best option so far. 💖 It makes purchasing that item even more meaningful and enjoyable. Thank you so much, Olamide! 😄

      Liked by 1 person

  7. This is wisdom spelled out!. I couldn’t agree more. Impulse buying for example as led people into unnecessary debts and from some stories heard, they end up not using those things purchased on impulse.

    And yes, having an emergency fund – I love this most!. 🙂

    Liked by 2 people

    1. That’s so true! I’ve also bought things that I only used a few times or worse, not at all. I feel so bad from the wasted money on those things. 🥺

      Yay! I’m so glad you could relate to this post! Thank you so much for sharing your thoughts, Mercy! 💖

      Like

    2. Smiles. I know that feeling. I used to a long time ago though. Now, I ask myself “Mercy, would you survive not using this now”. If I have a strong yes, I pass by, hoping someday I get it or something better. 🙂

      Smiles. Yes I did.
      You are welcome, Nath. Glad to. 🤗
      Keep it up. Wishing you a blessed day ahead. 🤗

      Liked by 1 person

    3. Having back up questions is such a great way to prevent ourselves from impulse buying! 😄 Thanks, Mercy!
      Have a blessed day to you, too! 💖

      Like

    1. Omg! They’re so right! Haha Thank you for sharing, Lucy! I’m so glad to hear from you! It’s been so long. I hope you’re having a great weekend! 💖

      Liked by 1 person

  8. These 5 and the bonus tip are totally helpful to those who where in debt, Nath! Especially student loan, thankfully for me, my Ma shape and taught me things when it comes to money but not totally. Glad that I don’t have debt though but I was trying to avoid it too. Thank you so much for sharing! ❤️

    Like

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