How do you live a Debt Free Life?

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Answered by: Solomon, An Expert in the How to Avoid Debt Category
Today, few people can fully attest to the fact that they are leading a life free from debts. It has become a common thing among people to borrow with the purpose of financing something. Buying a home, paying tuition for college or university, buying a car or starting a business are some of the reasons why people borrow money.The one thing creditors have noted with borrowers is that it is very easy to borrow money but difficult to payback. When you fail to payback your debts, not only does the amount loaned to you increase but you will affect your credit score. As your credit score lowers, you will be locked out of financial opportunities.

Here are top 3 ways to help you live a debt free life.

1. Depend less on student loans

Studies conducted by experts reveal that over 80% of employers require some form of post secondary education or training. With your high school diploma, your employment opportunities will be limited. Let's face it, college or university is not cheap. It takes a

substantial investment to complete and graduate with a degree. Yes student loans are offered by the government but applying for one is the first step to having a debt. You can simply avoid student loans by seeking scholarships, grants or enrolling in a 2 year program.

2. Use your credit card wisely

Did you know that lack of using your credit card will affect your credit score? One thing you need to know is that this is not how you avoid debt. Credit cards have made life to be easier. Not only have they eliminated the need of carrying around a lot of cash but you can make purchases pretty much anywhere. It is common for credit card users to go on a spending spree not realizing that the money they are spending is a loan from a financial institution and they will have to pay it back. To live a life free from debts, pay off your credit card payments immediately and use your credit card for emergencies only.

3. Shop wisely

It's quite easy to be carried away when it comes to shopping. Few people take the time to sit down and think before they make any purchase. Majority of people will walk into a store without a shopping list and end up purchasing stuff they did not need. All these will be charged to one or more credit cards. This is not a good practice especially if you are planning to lead a life free from debts. It is wise to research on the best deals. Thanks to the internet, different stores have come up with eCommerce platforms that feature free price comparison tools. Use them to find the best deals. Remember, buy only what you need.

Final Thoughts

Living a debt free life is not easy. You have to make tough choices that will have lead you to compromise on a lot but in the end, you will get to avoid high interest rates and auctioneers at your door ready to take away your stuff. Make wise choices.

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