If you are worried about getting into debt, then you should take a good look at your finances and come up with a budget that will allow you to live within your means. It will be even better if you can find a way to put by some savings as this will ensure you have an emergency fund to use instead of being forced to go into debt if you suddenly find yourself in need of a bulk sum for repair work, a new car or medical bills.
You should begin by making lists of your outgoings and income. Make sure you allow for all of your outgoings. It can be easy to overlook less frequent payments or ones that seem small individually but which can add up to a substantial amount.
Once you know how much you are spending and earning, you should make sure that the amounts balance. If you are spending too much, then you need to find some way of cutting your costs or of earning some extra money. You may want to change your shopping habits by buying less or shopping in more affordable stores, get a car that uses up less gas or take on some overtime at work, for example. If you find it difficult to keep track of what you are spending when you use a debit card then make sure you use cash instead.
Some of your expenses will vary from month to month, and you should set a limit on how much you will spend on these. If you spend less than this limit, you can add the remainder to your savings account.
Having some savings set aside will be a huge help if you are trying to stay out of debt. Rather than relying on borrowed money to cover bills that arrive before payday or to help yourself out of an emergency, you can use your own money. You should invest your money in a savings account in order to earn a good rate of interest. If you build up a large amount of savings, then you can look at some riskier, but potentially higher earning investments, but remember that you should always have a secure, easily accessible lump sum saved up which you can use when you need it.
If you are going to stay out of debt, you will need to make sure that you have the right attitude towards money. You must not be tempted to buy what you cannot afford. You must not be tricked by offers of credit cards, store cards and other borrowed money that will end up costing you a lot more than you may expect. You should concentrate on saving rather than spending your money. The only safe way to borrow is to borrow from your own savings. When you need some extra money, take it out of your savings, and then make sure that you pay it back and build up your savings again.