Avoid high-interest credit cards

The first rule to staying away from debt: Don’t get a credit card! Many young people, especially college students, see a credit card as an easy way to spend a few dollars without dipping into their savings account. However, in the long run, making decisions like this could ultimately lead to debt. But it isn’t just college kids making these decisions. Every year, millions of Americans rack up costly credit card fees during the holidays. Others use high-interest credit cards to pay for education, additions to their houses, even a new car. Making large purchases on a credit card without having the financial means to pay the loan back later will land you directly into debt. So consider the purchases you make and only make them if you can pay with cash.

Learn to pay your bills on time

There’s nothing worse than paying money for something when you don’t have to. Would you pay extra for a dinner that took you 15 minutes to eat instead of 10? Of course not. So why would you want to pay an extra fee for paying any of your bills a few days late? Naturally, everyone has certain times in their lives when money is not a luxury and certain priorities take precedent. But, when such cases arise, you should always try and find other options to be sure your bills are paid on time. Can you skip the fancy dinner on Friday or stay in on Saturday instead of catching the latest movie? By doing so, you might be able to pay off your credit card a few days early. Sure, it doesn’t sound exciting, but you’ll thank yourself when you avoid unnecessary surcharges and late fees later.

Don’t buy that!

It can’t be stressed enough: Credit cards are not to be used to purchase items that you cannot otherwise afford. In this day and age, a credit card can be very useful when used properly. You can pay your bills online with a credit card, send your mom some flowers or even get through checkout at the grocery store a little quicker. But a credit card can be a very dangerous thing. Student loans, car loans, mortgages and other loans can also be dangerous when not used properly. Only take on a level of debt that you feel comfortable paying. Find out how much your monthly payments will be and see if the total amount will figure into your monthly budget without a problem. And don’t make purchases that you simply cannot pay back in a timely fashion. Instead, set up a system to save enough money to make the purchases outright. These simple tips will allow you to stay out of debt in the long run.