Lifes Like That

My best advice to young people for avoiding debt is to stay as far away from credit cards as possible. A lot of people will apply for these cards for “emergencies” and end up using them for every purchase they make. Not only do they then have to pay back the original purchases, but they also have to pay the huge interest rates that are attached to them. The worst cards to apply for a in store cards, as they can only be used at that particular store and the interest rates are outrageous.

Another tip for young people would be to never go to one of those stores that offer payday loans. Once again, the interest rates are outrageous and if you don’t have the cash this week, it will be harder for you the following week to replace that income you need to pay back along with the interest rates they charge.

My final tip would be to make a budget (make it reasonable) and stick with it. You must be aware of your income coming in and your necessary bills going out. Do not try to live beyond your means. If you see a particular item you think you need, save the cash, cut back on the items that are not necessary and soon you will be able to purchase the item you want without having to pay out exorbitant interest rates to a third party.

It’s your money, manage it wisely and you won’t find yourself hugely in debt at a very young age.