Read This And You’ll Avoid Debt In Your Twenties
A worrying number of people in their twenties are currently facing a high level of debt. This can happen for a wide variety of reasons. Maybe they expected to earn more once they finished college. Perhaps, they underestimated how much they owed in student loans or perhaps they started to live on credit. Either way, you don’t want to make the same mistake. You need to find out how to avoid debt completely because debt is like quicksand. Once you’re in, it will be difficult to get out and before long you’ll be submerged.
Credit Cards: Don’t Use Them
There are certain times in life when you’ll have no other option to borrow money. Credit cards aren’t one of them. Unless you can get an interest free credit card, it’s a bad idea to use one at all. It’s too tempting because you will be carrying around a card that will allow you to buy whatever you want. Sure, you’ll have spending limits, but you can carry costs across more than one card. Credit cards may come in friendly little envelopes, and they are so easy to use. But they’ll fast become your own personal, financial nightmare. If you’re living on credit, you’re lying to yourself about the financial situation. Eventually, that lie is going to catch up to you.
Student Loans: Understand Your Options
In a way, debt is impossible to escape if you have already gone through college. Everyone who goes through college inevitably finds themselves with some level of debt. However, if you deal with your student loan correctly, it can feel more like an extra bill, rather than debt. You just pay off a little each month and make sure the interest level doesn’t build. The trick to dealing with your student loan is to know your options. For instance, there are income driven repayment options for student loans. This will cap your repayment based on how much you earn each month, and that’s very useful.
Budgeting: Learn How To, Fast
The main reason why people find themselves in debt early in life is that they don’t know how to budget. They spend more than they make and before long the debt is piling up. It’s understandable, particularly if you are on a low income and still want a good quality of life. However, it is possible to have holidays and luxuries while still handling your money responsible. Make sure you are saving each month and plan a budget. This will tell you how much you owe each month and how much you have leftover to spend. It might take longer to afford that dream holiday. But, when you do get to go, you won’t have bought it on credit.
Your Income: Increase It
Finally, you need to think about how you can increase your income and earn more. That way, you can follow the same budget and have more money to spend. There are lots of ways to increase your income, and one possibility is taking training courses. By taking training courses in your spare time, you’ll gain the skills that will make you more employable. This will improve your job prospects in future and get you a position with a higher pay grade.