More Than Finances

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How I’ve Managed To Stay Out of Debt

A lot of people talk about how debt has been a huge hindrance in their lives, preventing them from building wealth and getting ahead in life financially. Well, I’ve been fortunate to never have been in any huge amount of debt thus far in my life. The only major debt I’ve had was a car loan, which I paid off before it was due a few years ago. I have never had credit card debt or a payday loans. But I should note that I currently don’t have a mortgage to pay, which obviously helps a lot.

There are two main ways I’ve managed to stay debt free. Actually, they’re more of a certain mindset that I have than a technique.

I HATE Paying Interest

The main way I stay out of debt is by having the mindset of HATING the concept of paying interest. I’d like to think that I don’t hate too many things in life. But if I must hate something, then paying interest is probably it. It’s just downright PAINFUL to me.

That’s why I pay off my credit cards in FULL each month. The cards are linked to a checking account, and the money is deducted from there when I schedule the payment. If the balance on the card is more than the amount I have in my checking account, then I withdraw some money from my savings account and put it into the checking account.

Hating to have to pay interest is what led me to pay off my car loan early. When I looked at all the interest I was paying, a light bulb went off in my head. I suddenly realized that by paying off the loan, I could be saving that amount of interest instead of paying it out. In my opinion, for the most part, we should have interest paid TO US in the form of savings and investments, rather than having to pay out interest to others via loans and credit card balances.

I HATE Paying For Little Things

Related to the concept of hating to pay interest is the mindset of HATING to pay for the little expenses. For instance, the cost of stamps has been increasing over the years, and one stamp currently costs 44 cents. I still remember not to long ago when stamps cost 37 cents! On top of this, I don’t think the cost of postage will ever decrease. So since I hate paying for postage, I pay my bills for free online through electronic funds transfers. Doesn’t it upset you to have to pay somebody in order to pay your bills? Doesn’t it upset you even more if you now have to pay more money just to pay your bills?

I also hate the concept of ever having to pay to use a credit card. Because of that, I’ve only applied for cards without an annual fee.

I also love to read books. If I really like a book and will read it more than once, then I’ll consider buying it. But if I were to purchase every book that I wanted to read, I’d be spending a lot of money! Therefore, for the most part, I use the library to read for free.

Why pay for something, when that same exact thing can be done for free?

Last Thoughts

So the moral of the story is that I don’t spend money if I don’t have it, and I don’t spend money if I don’t need to. I don’t charge a purchase on a card if I know I can’t pay it off in full each month. I don’t pay for something if it can be done for free. That’s how I’ve stayed out of debt thus far.

What have you done to stay out of debt? Or, what are you doing now to get out of debt? Are there other little things that most people pay for that you do for free? Share them below.

First photo by *_Abhi_*; Second photo by koka_sexton
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