Although debt isn’t something one would want to have coming out into adulthood, it isn’t that uncommon anymore whether it be credit card balance, student loans, a new car payment or even a first -time mortgage.

People don’t like talking about it and rightfully so because who would want to share about how much they owe at a family gathering or over a dinner date? As displeasing as it sounds, debt just might not be getting talked about as much as it actually needs to be.

For those wanting to ensure that they won’t have to tackle this issue anytime in the future, here’s 5 practices that could keep you off a high figure debt.


Withstand the urge to swipe

Credit cards can be the seed to an action that would form a highway to debt. The amount of people buying into the belief that credit cards help buy unaffordable things is too high, because majority of these folks have also found themselves in debt at the same time. The solution is pretty straightforward for this, don’t swipe when you’re purchasing at try to use what you have in a debit card or cash at hand instead. A good rule of thumb would be not buying it if you don’t have enough cash to afford it.


Budget up

Don’t sacrifice everything in order to fulfill your impulse buying habits. Start to look out for what’s coming in to stay and what’s going out in order to find middle of cutting down your spending. Based on that, decide what you would consider as needs and what you forgo as wants; with some minor tweaks in your spending habits here and there, the amount that you would end up saving may actually surprise you when you don’t spend it on irrelevant purchases.


Set reminders for all those bills

Bills are a form of debt that we could never run away from. Although it’s easily for them go unnoticed and piled up, it’s extremely easy to avoid forgetting about them. Paying off bills before their due date is a great way to stay out of debt; banks have made the process so seamless that it’s almost a no brainer to skip payments now, consider using e-banking alternatives to get your payment done and also to save time on your end. If not, you could even utilize the technology at hand to set reminders for yourself in your smartphone.


Side gigs

There’s not really a thing as too little money. Other than being good habit, you don’t need to wait until you’re in debt to start one. If you’ve already taken a huge cut in expenses but still find yourself unable to pay off debt, you can start one or even a few side gigs that would boost your income that much more. Whether it’s freelancing your skills, babysitting or selling used items online and offline, these are the things that could earn you some extra dough for what you owe.


Consider refinancing

Typically used by homeowners to refinance and pay off debt such as credit card balances, they use cash-out refinance to get a mortgage for more than they owe on the home. This allows them to take the difference in cash and pay off high-interest debt with it. Consolidating credit card debt using a cash-out refinance allows you to make fixed payments over a set period, rather than paying a revolving balance every month. As a bonus, mortgage rates are usually lower than credit card interest rates. Before going into refinancing, it’s vital to have a plan to make sure you stay out of debt; look at all the options you have at hand before deciding on one that fits your needs and goals.

Your spending and saving habits are essentially what decides the outcome for you, but a financial advisor could help get the most out of your situation and land yourself in a better debt situation, as ironic as it seems. The key is to plan, and what better way to plan than to have an expert to help you with that.

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