Common Sense Ways to Avoid Debt

There are a variety of ways to avoid debt which can involve a number of financial strategies. Here are a few tips to better avoid debt.

Open saving account:

You can open a saving account with any bank, or with building societies. Savings accounts can come in a variety of packages, but all will provide annul interest on the savings deposit. As such, invest in a good savings account with a good rate of interest. Then, with regular monthly installments this deposit can become larger and larger. The interest will further compound and expand the saving deposit. A number of saving accounts are also easy access. As such, saving with saving accounts is one of the best ways to avoid debt.

Open a bond:

Bonds are another good investment option for saving. Bonds are similar to saving accounts in that they provide interest returns for investments made. However, they usually require that larger deposits be made for a fixed period. The advantages of bonds is that they provide a higher fixed rate of interest than most saving accounts do. Although, unlike saving accounts bonds are not usually easy access. However, saving with bonds is still a good alternative.


Budgeting is another financial strategy worth noting. For this a budget template will be required, and software packages such as Excel are recommended for this. Then, with a suitable spreadsheet monthly forecasts and records can be kept for each month. As such, effective budgeting can make some difference, and budgets can be a great financial management tool.

Cheap loans:

Overall, if you must borrow from banks then cheap loans with low interest rates are most preferable. Research the various banks and the loan packages that they offer, which usually include fixed or variable rate loans. It is difficult to say which is the better loan package, although the advantage of fixed rate loans is that you can be sure that their interest rates will not increase. As such, fixed rate loans with relatively low rates are recommended. Hereafter, it’s better to repay that loan sooner as opposed to later. If the loan is left unpaid then it will accumulate more interest, and the loan value will inflate. As such, clear the loan off as soon as possible, or perhaps consider establishing a monthly standing order so that the loan will gradually be covered.

These are a few good tips to better avoid debt. Invest in saving accounts with high rates of interest, fixed rate bonds, set-up a budget spreadsheet in Excel or alternative spreadsheet software package, and borrow low rate loans from banks.