Secrets for staying out of debt
Debts - they are there to make our lives miserable. They are the cause of financial problems. They command us to work for the rest of our lives and become corporate slaves.
Some people lose their insanity because of too much debt. Some commit suicides because they are heavily burdened by a lot of debts while some get into jail because of non-payment of their debts. Yet if you know how to manage your finances, you can live a debt free life.
Here are some great advice for changing that and staying out of debt:
Think twice before borrowing. Any time you owe money, you’re carrying debt, whether it’s the mortgage, your credit cards, or even utilities. You’re enjoying something now and paying for it later.
Normally, borrowing money for homes, vehicles, and self-training is not a bad kind of debt. A student loan, for example, is a debt that makes sense. It is an investment in human capital, something that’s going to appreciate in the future.
In US, a lot of parents don’t want their children to graduate from college with any student loan debt. That’s very noble. But in order to make that happen, sometimes they’ll sacrifice saving for their own retirement. Nobody is going to lend you money to retire but they will lend you money to put your children to school.
Use credit cards wisely. Credit cards are the main sources of debts if not handled properly. You may be enjoying a lot of stuffs bought using your credit cards now but definitely it would hunt you in the future. It would make you work harder to earn more just to pay it. Try to eliminate credit card debt or it will eliminate your finances.
Here in the Philippines, there are rare cases, if there are, of non-payment of credit cards who gets into jail as it is just considered a civil case called “Sum of Money” and not a criminal case such as Bouncing Checks and Estafa. However, when you have a bad credit standing, you will have a hard time taking a loan again in whatever form whether be a mortgage, car loan or salary loan.
Evaluate your finances. Always make a habit to evaluate your finances. Make a serious effort to live within your means. Above all, educate yourself towards financial intelligence.
Get professional help. If you need some help with debt, there are a lot of debt professionals out there that offers advice and restructuring of your finances. One of them is granite financial network specifically if you have more than $10,000 on credit card debts. They have qualified debt professionals with the best experience to resolve your financial problems.
When it comes to debt, make it work for you. Rein in credit card spending, and make sure you control it, not vice versa.
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Tagged with: credit cards • money
Filed under: Personal Finance
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14 comments
making loans and using credit cards are the only options now to survive in the world financial crisis that we are experiencing now..as long as we know how to manage our finance and expense..theres nothing wrong with borrowing or using credit cards as options to make expenses
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In the countries where you can find a high use of credit cards, or all other kinds of credit,you may figure out ,that it’s a consumable societies.
Communities which are encouraging consumption inside all the whole economic cycle,because the infrastructure is capitalist,or by other word, private sector which is the dominant player,but not any sector ,it’s the top of economic cycle which is dealing with financial fund:a big willing of organized fast and large profit, against individual and reckless benefit…
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Delay gratification
wish i have the discipline.
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just got my debit card the other day at ngaun palang natetempt na akong gamitin ang card ko HAHA. Pero kelangan magtiis! nice post sir!
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I think self-control is what we must all learn to avoid debt. We should only limit our debts for those that are necessary.
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I enjoyed reading you.
I particularly remember one financial planner who explained to me debts are not per se bad. There are good debts and bad debts. Good debts are those which put money in your pocket, i.e., if used for business, and this is how the rich get richer. Bad debts, on the other hand, are those that take money out of your pocket. I guess people must just learn to discern and get into good debts. Let’s. 
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Hi Issa. Thanks for dropping by. I also tackled good debt vs. bad debt (debt leveraging) in another article in this blog entitled “What Makes Rich Gets Richer?” These ideas came from the famous icon in personal finance - Robert Kiyosaki.
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Haha… One mind, Tyrone. One mind. The concept was cemented, well, for me at least, by Bo Sanchez. I haven’t really tried to get a business loan, everything comes from my pocket, but yeah, it is starting to sound like a good idea. Thanks! I look forward to reading more of you.
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This is the reason I don’t ever use my Credit card. no cash. no purchases. period.
I keep my money on a trusted bank too.
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I admired Robert Kiyosaki a lot…been reading his rich dad poor dad book….normally equating this….income-savings=expense….not…income-expense=savings….but most of us end up without any savings after all expenses incurred and worst long list of debts comes in….in our old but tiring equation……
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Yes Robert Kiyosaki is admirable
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I’ve noticed that some media shows keep “advising” people,about what ,they have to do to avoid any financial difficulties,but in the same time they’re opening their for ads coming from companies ,they are making people scared from…
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I kind a love this blog, i think its good stuff to our members. so much things to learn and i hope you always write informative stuff on this site. tnx
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Debt is the secret weapon of the larger countries to conquer small countries like ours and interest is its prime ammunition. it’s a war that’s going on and many did’nt notice it.
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