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Listed below are some of the important tips and guidelines on how to avoid debt.

How to avoid debt?

When asked "How to avoid debt?", a financial planner gave the following advice.

Pay cash for most purchases
Paying cash for most purchases is important because you cannot spend more than what you have at the bank. If you cut down on impulsive buying you will be able to avoid debt.

Search for a low interest credit card
Interest on your credit cards eats up a chunk of your paycheck so it pays to research for credit cards with low interest rates and transfer your balances to the new credit card.

Cash advance
Stay away from cash advance. The interest rate on cash advance is generally very high and can put a big hole in your finances.

Limit your credit cards
A good strategy to avoid debt is to limit your credit cards to a maximum of two credit cards. You can store the other credit cards in your closet or cut them up and close the accounts. Lesser credit card equates to debt avoidance.

Pay off credit cards on time
I cannot stress the importance to paying your credit cards on time. When you delay, you will be charged late fees and your credit card company may hike the interest rate on your credit card.

Live frugally
Do not buy stuff you cannot afford. With the easy availability of credit, people get sucked into credit card debt in no time. Avoid impulsive purchases and live frugally.

The above article explains you how to avoid debt. If you know of any other tips on how to avoid debt, please feel free to email me. If you are unable to get your debt on track, consider debt consolidation or credit counseling.

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