Debt can easily spiral out of control, especially if you’re not careful. But don’t worry, we have 5 simple ways to avoid falling into the debt trap.
1. Live Within Your Means
Don’t spend more than you earn. It sounds simple, but it’s one of the best ways to avoid debt.
2. Build an Emergency Fund
An emergency fund can save you from taking on debt when unexpected expenses pop up. Aim to save at least 3-6 months of living expenses.
3. Pay Your Credit Card Bills in Full
Credit cards can easily lead to debt if you don’t pay them off in full every month. Try to pay off your balance completely to avoid high-interest charges.
4. Avoid Lifestyle Inflation
As your income grows, it can be tempting to increase your spending. But, try to keep your lifestyle expenses in check and save or invest the extra money instead.
5. Seek Professional Help
If you’re already in debt, don’t hesitate to seek professional help. Financial advisors and credit counselors can guide you on how to get back on track.