How to Avoid Debt

Considering that the average American household has several thousand dollars of consumer debt (credit cards and non-mortgage loans), avoiding debt is becoming more essential to financial survival. This article will describe in detail how to avoid debt. Getting yourself out of already existing debt is covered in detail in other articles of many great writers on this site.

As far as avoiding new debt, there's a revolutionary new, but incredibly simple program to avoid debt. Don't buy what you can't afford. Yes, it's that simple. If you can't afford something, and don't have the cash to pay for it, you should not buy it. Period. If you follow this plan you will avoid debt. This may sound a bit smarmy (though that is not intended), but it is true. If you don't buy what you can't afford, you will not go into debt.

There are deeper and more complex forces at work though that drive spending decisions and attitudes toward debt. Avoiding debt in our consumer driven society will likely require some sacrifice, introspection, and evaluation of your system of values. Every human being has both needs and wants. Needs are simple, every human being requires shelter, food, water, and clothing. The degree to which you equip yourself with these needs can cost you a great deal of money, or very little money, that is your choice as a consumer.

If you want to truly avoid debt you will learn to realize that many of the things that are advertised to you are truly wants, not needs. Cable television, your daily latte from Starbucks, bottled water, cell phones (yeah, you can alive without it), that brand name pair of jeans, and the concert you "need" to attend are all wants. You will live without them. There are many free activities in your town that cost nothing, and may even expand your horizon a little bit. Go to the library, take a hike, go for a walk in your neighborhood, gaze at stars at night, play a board game with some friends. These are just a few ideas, run with it and see where it takes you.

I realize this message will probably not be well received. In today's society we are programmed by the media to equate possessions and spending with happiness. The term "shopping therapy" alone speaks volumes to our attitudes about money. Simplifying your life, spending less, trying some free things may not only enrich your life, but help you avoid debt.