ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to avoid getting in to debt

Updated on July 10, 2016

For many years people lived without borrowing money and by necessity lived within their means. Saving up for things was a way of life or one simply did without. The change in society’s attitude to that of a sense of entitlement has lead to many living on borrowed funds with no safety net in place. A large percentage of their income is used to service their acquired debt. Much of the nation has been conned into thinking they have to rely on borrowed money, this simply is not true.

The only major borrowing that is actually wise, is to purchase a home. A large down payment coupled with a short-term mortgage, which you can aim to pay off early, should ideally be the end of the necessity of borrowing. Once you can truly call your bricks and mortar your own, you should aim to live without borrowing as every borrowed dollar represents a debt that needs repaying with interest.

Why people need to drive with a massive car loan is astounding when the math is done. They have literally just given thousands of dollars away for the smell of new leather. Maybe the male midlife crisis won’t have its typical medicine if a reliable second-hand car was the purchase choice, but it makes far better financial sense. Instead of servicing loan repayments, the money saved can be invested to pay for a new car in cash if the desire to own one is there. The cash purchaser is bound to get a substantially better deal than the person reliant on loans.

Living a debt-free life is simply a case of living within one's means, and saving rather than spending frivolously. Those who have been caught out with credit card debt are realizing that some of that debt is a meal eaten three years ago, or a dress picked up in the sales and never worn. Saving and investing produces returns that enable your wealth to grow rather than be squandered, but there is little point in saving and servicing high-interest debt at the same time. It makes far more fiscal sense to carry zero debt and save, providing yourself with a safety net.

America has witnessed new financial turmoil with massive student loan debt, which now amounts to a total over $1 trillion. The availability of student loans to those who do not pursue a degree to the conclusion of a career which will earn enough to cover the repayments is short-sighted. There is now the beginning of a turn as people realize that perhaps investing money for retirement is a wiser choice than funding an overpriced college education.

Borrowing for a degree is only wise if there is forethought in planning, which allows for the repayment of the debt burden. Thus, potential dentists borrow prudently whilst philosophy majors could be out in the cold unable to repay their loans without a suitable income and repayment plan.

It is perfectly possible to live without borrowing and never even consider borrowing an option once the wise investment of a home is paid for. Our ancestors did it and millions of people across the world do it every day. It simply involves living within one's means, saving and becoming less materialistic.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)