The best way to avoid getting into debt is to make sure you know what kind of debt you have — and how much of that debt is manageable for the time being.
Debt can come in many forms: credit card bills, student loan payments, car loans, mortgages... the list goes on and on. The key is to make sure you're paying off the debts that matter most to you and cutting out any unnecessary ones.
Here are some tips for getting started:
Figure out your debt. It's easy to track all the different debt types in your life — so long as they're categorized correctly! If possible, try tracking all your debts with a spreadsheet or by using an expense tracker app. This will help you keep track of everything and give you peace of mind knowing exactly where every penny goes each month (or quarter!).
Figure out a target for the money you need to pay off. Once you have your list of debts, go through each and figure out what percentage of your available income goes towards each one. This will help determine which ones need to be paid off first. For instance, if you are spending more than 30% of your income on debt payments, then it's probably time for some budget cuts or consolidation.
Make a plan to start paying off debt. Once this has been decided, plan how long it will take for you to pay off all the money owed on any given account and when exactly it will take place. For example, if it takes about one year for you to pay off $5,000 in student loans then set aside enough money every month so that by December 1st every year (or whenever it takes place) all of your debts will have been paid off completely with no exceptions whatsoever.







