You hear financial experts preach about getting out of debt. They tell you to cut up your credit cards and pay for everything with cash. While some people may need to follow this advice, you may wonder if it’s the case for everyone. Should you avoid ever having any kind of debt again?
It’s almost impossible to avoid all debt today. The idea of paying cash for everything is a noble one, but it’s not very realistic. If you can only buy the car you can afford with cash, you may end up driving a broken-down vehicle. You’ll always rent if you wait to pay cash for a home. Some debt is unavoidable in today’s society – even though there are those rare cases who truly can pay cash for everything.
Not All Debt is Bad
Since credit plays such as important role in many financial decisions, debt is not always a bad thing. It can show that you’re responsible and you can manage your finances. Credit rating is used for renting apartments, getting insurance and even being hired at certain jobs. Your credit says a lot about your character, which is why it is so important.
What If You Can’t Handle Debt?
If you struggle to get out of debt only to fall back into the same trap, you may not be able to take on debt and manage it responsibly now. The key is not to write it off forever, but rather to learn how to change your habits. You can find classes and seminars that teach you how to handle money and credit without letting it ruin your life.
In the end, the answer is different for everyone on whether they should avoid debt or be willing to take some on. One answer that remains the same is to never take on more debt than you can handle.
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