Getting into debt is one of those things that just happens and often even without you noticing. Fortunately, there is always a way out of it.

Back in July, Reuters reported that the Institute of International Finance stated that - global debt surged to a record $258 trillion in the first quarter of 2020 as economies around the world collapsed while trying to contain the coronavirus pandemic. From that point on, debt levels only continued to rise, the consequences of which we will see over many years ahead.

So, let’s look at ways you can avoid and get out of debt.


1. How To Avoid Getting Into Debt

The best way to avoid the harmful impact of debt is to avoid it entirely.


Avoid illusion at all cost

Having a credit card gives us the illusion that we earn more money than we actually do. If you don’t trust yourself that you won’t fall into that trap, don’t get a credit card. A simple rule is if you cannot pay for something in cash, don’t buy it.


Avoid impulse purchases

Spending has become one of the most popular temptations in today's society. Fortunately, there are many tactics with which you can resist the urge to splurge. For example, one is to keep your eyes on the prize such as having the money for your dream holiday or a peaceful retirement. If that just seems too far off, try a simple technique that consists of putting your cards in the freezer. By the time the ice melts, at least your odds of resisting the temptation will increase.


Have an emergency fund

The definition of life is to expect the unexpected. Unexpected expenses can get you into debt in a blink of an eye so make sure you avoid that scenario by taking money aside for an emergency fund. Ideally, the amount should have your expenses covered for three to six months.


Focus on needs and question your wants

The rule is that there is always room to cut unnecessary spending. It could be your Netflix subscription, Amazon Prime membership or morning coffee. The more you can liberate yourself from your wants, the better your finances will be.



If you do it right, budgeting can become your superpower. By budgeting out your expenses, not only do you know where your money is going, but you can also find ways to achieve your financial goals even faster. The more detailed your budget is, the more opportunities for savings you will be able to spot as well as the costs you can reduce or eliminate entirely.


Make savings a priority

If you label savings as optional, odds are there won’t be any savings left at the end of the month. Make sure you devote a specific percentage each month to savings, just like to any other fixed expense. Savings can also help you keep your eyes on the prize and make cutting down on wants less painful as you will know there’s a bigger fish to fry.


2. Common Causes of Debt and How To Pay It Off Quickly

It all begins by spending more than you earn by using your credit card or not being prepared for an unexpected expense. The next thing you know it, a big chunk of your budget goes out to debt repayments.


Make a debt strategy

The debt snowball method implies you will focus on paying off your smallest debt first, then roll the amount you had been paying on it into payments on the next largest. With debt avalanche, you pay off your debt with the highest interest rate first then the next highest rate, and so on. It may save you time and money over the course of your debt payoff.

Debt consolidation is when you combine multiple old debts into a single new one, ideally at a lower interest rate, making payments more manageable or the payoff period shorter. There are many ways to consolidate debt.


Reduce your monthly household expenses

For instance, you can save on your utility bill by looking for the cheapest electric company

in your area. You can double your savings if you adopt energy-efficient habit.


Make more money

These days, it’s easier than ever to find a side-hustle. All you need is a laptop and wi-fi and you can edit or write articles. You might not even need those as if you choose to pet-sit or be a dog walker.



Stay on top of your finances by adopting healthy financial habits. If you see you are not making any progress with your debt repayments, seek help. Getting into debt can happen to anyone but it’s up to you to make sure you get out of it as soon as possible and avoid the detrimental impact it can have on your quality of life.

Author's Bio: 

I am Lucy Jones