The Art of Staying Out of Debt & Live a Debt-free Life


Indebtedness is too heavy of a burden to carry for a long time. Debt, like every problem, starts with small things like buying an extra pair of shoes on your credit card. You will hear many people saying, “but it is just an extra pair of shoes,” but that “just an extra” is the point where you develop the habit of impulse buying and living off credit. Unfortunately, you do not realize it until it becomes too big to control.

Does that mean having a credit card or taking a loan are bad things? Does that mean debts are bad?

Well, the answer is NO! In a fast-paced world like ours, it is vital to have an extra line of credit, but it is essential to understand that this line of credit is for an emergency, not for overspending. Similarly, loans are not bad; in fact, they are the opposite of it! It is crucial to have a healthy balance of loans to maintain a good credit score. The inability of an individual to pay back the amount he/ she owes makes a debt bad. And once you are in the debt trap, it becomes challenging to manage your debt and get out of it.

So, how can you stay out of debt?

With so many options and temptations around us, staying out of debt might be complicated, but it is not impossible. Yes, it takes determination and willpower, but there is always light at the end of the tunnel.

So let us see which things can help you in stay out of debt:

Budget and Lists!

Are you one of those who think that lists are for crazy people and budgeting isn’t helpful? If yes, then you are in for a surprise! Budgeting and lists are the easiest ways to stay out of debt. Budgeting gives you a fair idea of how much you should spend and save at the end of the month, and lists keep you on track—going out for grocery shopping? List everything down and tick off every item you have bought. These exercises will save you money as well as keep you away from overspending.


Many people take insurance casually, but the truth is they are essential to prevent future emergency expenditure. One must buy good health and vehicle insurance policies. Research carefully; overspending on the wrong insurance plan can also land you into debt, and choose a plan that suits your financial situation.

Talk and Learn

Talking about money can help you through many situations. The truth is it doesn’t take much to get into debt, but it takes discipline and determination to get out of debt. So, talk about it, seek help from a professional financial advisor if needed, read online, watch videos to learn about financial management, and grow your money.

Avoid the swipe game!

Yes, credit cards are tempting, so are the offers you get on them, but irresponsible expenditure from your credit card is what lands many people into the debt trap. So avoid using your credit card, especially for smaller purchases.

Stick to cash

Having hard cash with you while shopping can save you from buying unnecessary items. Using cash to pay at grocery stores or supermarkets would give you immense control over buying, as many people feel buyer’s remorse before spending money on unnecessary items.

Reconsider your lifestyle choices

Yes, it is great to live a luxurious lifestyle when your income is double your expenditures. It gives you space to save enough and live an extravagant lifestyle. But if your monthly obligations are more than 50% of your salary, you need to make some changes—even small things like cooking yourself instead of eating out or not buying subscriptions every month work well.

Pay your credit card bills in full

Credit cards are great! Yes, they are. The problem lies in us! Our problem is that we treat a credit card like an extra line of credit to buy things we want. The main issue starts when people spend money but cannot pay the bills. Paying only minimum dues or not paying at all harms your credit score. So, along with avoiding the usage of credit cards, you should pay your bills in full or at least more than the minimum due.

Explore freelancing opportunities

For some people, it is difficult to save due to the responsibilities and expenditures they have. Exploring freelancing opportunities could lighten that burden. You can either save the extra money or invest it to grow your money. Getting a side gig can also help you to get out of the paycheck to paycheck cycle. If you are already in debt, that extra income can help you get over your debt and live a debt-free life.

Are there other ways to get out of debt?

Debt can be difficult to handle. It is relatively easy for some people as their debt load is not too much to pay off, but there are options available for deeply indebted people. Debt settlement is one such option. FREED is India’s first comprehensive debt relief company. We are determined to help our clients become debt-free and financially secure. If you are struggling with debt and need help, you can reach us on 01246663666 or visit our website for more details.

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