Are you waiting for your next paycheck to arrive? You likely receive your money at the beginning of the month or at the end. Which is the most difficult time of the month? The time where you receive no money to live with. This is the most dangerous period for most households to take on an extra debt. Be very cautious by taking on debt, only do it when it’s strictly necessary.
For a temporary loan, dare to ask friends for it. They often times have money around for emergencies, make sure to never ask them for that money. Any excess money could be used for friend loans. When you are in a better financial situation make sure to return the favour both to friends who helped you before and those who haven’t. This will help you feel better and it may help you in the future.
Rather go to bed without dinner than to rise in debt. – Benjamin Franklin
The quote from Benjamin Franklin seems a painfull situation, but it hits home with truth. Unfortunately we aren’t all in the environment that allows us to avoid all debts. But often time there is a choice for us to make. If you feel it’s not possible to go without debt, take another look at your situation.
After carefull consideration you might still find yourself locked against getting a debt to survive. Ask the people around you if there is a possibility to stay clear from excessive debt. After waiting for the answer you will have done everything you can to avoid unnecessary debts.
Now it’s time to look at reducing the amount you need to borrow. When looking for a mortgage consider what your priorities are in a house and which are the things you can live without. This way you can reduce the money you need and the money you need to pay on it.
After taking on debt prevent taking on more debts by saving money for future use. If there is the possibility for paying early, calculate if this is worth it for you and proceed paying if it’s beneficial. Unfortunately taking on debts can’t be avoided all the time. Being conscious about the costs of debts helps you staying aware of the risks involved.