The Importance Of Avoiding Consumer Debt

The institution of credit cards have been around since the 1950’s. Diners club was the first credit card company to begin offering services to consumers. Debt comes in different forms, most are hidden in everyday happenstances. Divorce, gambling, and financial illiteracy are a few of the major things that can cause a person to go into extreme debt. Consumer debt can be avoided and it starts with education of money and how it works, this education should begin in elementary school, and an even deeper education in high school. As most students have jobs and begin to earn money if they learn how to save then they are more likely to avoid debt and be more financially secure. Avoiding debt can be done by following simple steps such as, maintaining a regular budget, not spending an excessive amount without being able to pay it back, …show more content…
Maintaining a budget isn’t always the easiest thing to do because it is a lifestyle change and it has to be followed very strictly and thoroughly. Try to live comfortably without without feeling like you have to strain yourself mentally to make your dollars stretch from month to month. This can be done by minimizing the amount of times that you eat out in a month, or living in a home or apartment that is a modest size and within your price range. Setting limits will prevent spending more money than needed. Budgeting shows how much a debt load can realistically be taken on without being stressed or if taking the debt