7 Ways You Can Avoid Debt in Your 20s and 30s

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Incurring debt can be a debilitating financial problem later in life. The majority of adults today are struggling with some form of debt, whether it be student loan debt, credit card debt, or debt that their parents left behind.   An experienced debt settlement lawyer in Salt Lake City and other places is not difficult to find, but as much as possible, you should avoid incurring a massive debt in the first place. Here are some of the best ways you can avoid debt while you’re in early adulthood:

Set a budget

Once you start working, you should set a budget that will help you control your spending. In your 20s and 30s, it’s easy to spend mindlessly while enjoying life. But it’s not going to be as fun when you find yourself in debt and having no savings later on.

Know your existing debts

List down all your existing loans and their corresponding interest rates. Then, make a plan on how you can pay off those with the highest interest rates first. If you don’t have a job yet, ask the loan company if you can defer your debts for some time.

Start an emergency fund

As early as you can, create an emergency fund that is separate from your savings. This emergency fund will serve as a source of money if any unexpected expenses occur, such as a car repair or medical bill.

Save, save, save

The future would be much brighter if you saved money while in your 20s and 30s. Growing your savings account will open more doors for you, say, buying a house and making other investments. So make it a habit to save money every paycheck. It doesn’t have to be a huge chunk, but every dollar can go a long way.

Stay on top of credit card payments

Being late on credit card payments can put you into a deeper financial hole, so it’s better to make sure that you pay your bills on time. Otherwise, a late fee will be added on top of your bill.

pencil erasing credit card debt

A big mistake that many 20-somethings make is using their credit card without actually having the cash to pay it off. Avoid the problem by having this mindset: If you can’t afford it in cash, don’t swipe it on your credit card

Hold off on indulgement

Your youth is the time to enjoy what life can offer, but it shouldn’t be at the expense of your financial stability. When thinking of treating one’s self, make sure you have enough disposable income to do it. If you don’t, hold off the treat until you can truly afford it.

Debt is something that many people struggle with. But it is not impossible to avoid or overcome. By taking these tips by heart, you are one step closer to having a debt-free life. Your future self and probably your family and children will thank you for doing this now.

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