There is only one way to avoid debt - just do not borrow. Living within your means is not as difficult as it might seem. A person is built in such a way that he always wants more than he is able to pay. But if you soberly assess your capabilities and objective needs, it is quite possible to find the best option that allows you to get by with the available amount.
Instructions
Step 1
Before making a decision on a purchase or other cost, it is worthwhile to think carefully about whether this acquisition is really necessary and why? In many cases, considerations of prestige can be compromised. After all, you spend money for yourself, and not for others (and you live too), and it will often be useful to simply ignore the opinion of outsiders.
Having settled on the optimal option, it is worth monitoring, whether it is possible to use it at a lower cost.
But one should not get carried away with saving through measure either. The proverbs "I'm not rich enough to buy cheap things" and "avaricious pays twice" are well-known.
Step 2
Existing financial obligations should be strictly followed. Pay utility bills on time, pay rent, loan payments, if any.
The existing interest rates and various hidden commissions in our reality are such that it is better to forget the word "loan product" altogether. But this does not always work. For example, in most cases it is unrealistic to solve the housing issue without a mortgage, and not everyone can afford it.
A couple of simple rules will allow you to find a compromise: take a loan only as a last resort and very carefully study all the essential conditions for it, especially those written in the text of the agreement in small print.
Step 3
Another simple rule is "pay yourself first." It can also be understood as the need to take into account a part of the income that needs to be set aside for the future in the number of compulsory expenses. It is considered optimal to allocate about 10% of total financial receipts for these purposes.
