{"id":286945,"date":"2016-04-04T10:41:53","date_gmt":"2016-04-04T15:41:53","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/debt-relief\/tips-for-avoiding-debt.html"},"modified":"2024-05-16T13:04:18","modified_gmt":"2024-05-16T18:04:18","slug":"tips-for-avoiding-debt","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/tips-for-avoiding-debt.html","title":{"rendered":"Tips for Avoiding Debt"},"content":{"rendered":"\n
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Tips for Avoiding Debt<\/h1>\n
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\n By Amy Vandervort-Clark, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last reviewed\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Avoiding debt is one of the best ways to prepare for a secure financial future. But living completely debt-free is not often realistic. As we continued to recover from the effects of the COVID-19 pandemic, many struggled financially, and debt grew. Perhaps you fell behind on mortgage payments and risked foreclosure. You may have incurred unexpected medical debt.<\/p>\r\n

Credit cards, mortgage loans<\/a>, and car payments are necessities in most consumers’ lives today. Minimizing debt, avoiding overdue bills, and avoiding aggressive debt collectors<\/a> who use unfair collection practices are in everyone’s best interests.<\/p>\r\n

Credit Cards and the Slippery Slope of Debt<\/h2>\r\n

Falling into credit card debt risks your financial freedom. A credit card can function as a high-interest loan rather than a cash substitute. As debt builds, it becomes increasingly difficult to get out of debt. Low monthly payments\u2014usually only 2-3% of the balance\u2014and high interest rates keep consumers in debt for many years. If you can’t pay, you could end up in debt collection, destroying your credit score.<\/p>\r\n

But when used properly, using a credit card may offer several advantages, such as:<\/p>\r\n