When money is tight it can be easy to panic, perhaps even thinking about taking drastic measures to get some cash, any cash, in the bank. Before you choose to go into debt, consider these four ways to avoid making a hasty decision regarding your finances:

1. Avoid The Worst Of The Worst

Payday loans are a type of loan that often comes with extremely high interest and unforgiving penalties when you can’t repay. Sadly, these loans populate online search inquiries when you’re looking for a quick fix, based on desperate times. Before you click to apply, consider payday loan alternatives to get that speedy cash injection, without such scary repayment terms.

2. Rethink Why You’re Considering Taking On Debt

There are some legitimate reasons anyone might choose to go into debt. However, some reasons to get into debt just aren’t worth it. Are you considering going into debt for any of the following reasons?

  • Vacation
  • Christmas
  • Clothes
  • The latest gadgets
  • Getting married

Many people choose to go into debt for the above reasons. In fact, a whopping 28% of American couples go into debt when they get married. You know what we’re going to say: it’s not worth it. Spending money on these things will not change your life in any lasting way. It won’t make you less depressed and the novelty will wear off quickly. Before you choose to go into debt for these reasons,  think carefully about what you have to gain long-term.

3. Could You Overhaul Your Budget?

Is it possible that you could rework your budget to help you avoid debt? Take a look at these free budgeting app suggestions to get down and dirty with your finances. There are lots of ways you can save money, trim outgoings and raise extra funds. Often we can leave our financial habits to go dusty with time and assume we are on top of what comes in and what needs to go out. Taking a second look and going hard on your budget could help you to avoid going into debt.

4. Can Family & Friends Help?

It is not a good idea to borrow money from friends and family considering the fact that nearly 75% of those who do just that, never pay it back. However, if you are responsible with money and you know that you will repay, then it could be a good option to help you avoid going into debt with lenders.

Yes, you would technically still be in debt with your friend or family member, but you’ll avoid interest charges and any hefty full repayment penalties. If you cannot be sure you can pay the money back, you should not consider borrowing money from friends and family or at least be upfront about the possibility that it may take you a while to return their funds. You should be especially cautious with lending from family and friends who are not in a good financial position themselves.

Going into debt is not inevitable. If you’re running into trouble with money, you owe it to yourself to look into every other option before you indebt yourself to lenders. You might want to panic, but staying calm means you’re level-headed and working through your problems. Be honest with your situation and face up to facts. You’re not in debt right now, so there is still hope yet. If you’re already in deep and you need help extricating yourself from your predicament, there are plenty of resources to help you get out of debt, so never be shy to utilize them.

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