The Dangers of Debt and How to Avoid It

High rates of interest: A debt can accumulate interest charges very rapidly and result in owing a much larger sum of money.
The impairment of credit score: Defaults on debts or excessive debts negatively affect credit scores which complicates eligibility for loans and credit cards.
Experience of economic worst: Stress and worry are caused by debt which furthers disquiet on emotional, physical, and spiritual levels.
Confiscation of assets: Excess debts may have led to a foreclosure on home or car repossession.
Loss of opportunity: Debt can greatly limit your ability to save for retirement, invest or pursue other goals.

Prepare a budget: This gives you a good insight into your income and expenses, offering areas to cut down.
Live below one’s means: In simple terms, do not spend more than can afford to; therefore, consciously choose what to buy and pay attention to necessities.
Make an emergency fund: Savings can help deal with unexpected costs without necessarily having recourse to debt.
Use credit cards with caution: Charge nothing to your credit card unless you can pay it all when the bill arrives without incurring any interest.
Seek help: Whenever in doubt about dealing with a possible case of debt take the initiative and approach a non-profit credit counseling agency because they are in a position to guide you on the path of financial healing.
Resist predatory lenders: Try to avoid payday loans, title loans, and other predatory lenders with skyrocketing interest rates used to trap you in debt.
Educate on self: Learn personal finance and debt management so you can make wise decisions and avoid the pitfalls of debt.
Negotiate with creditors: If you find it challenging to pay your debts, do not hesitate to reach out to your creditors and discuss alternative payment plans or reductions in interest rates.