How to avoid being on too much debt.

[CALVINDOL]

It is actually not a bad thing for an individual to borrow money especially when he or she is actually in need of it also going to establish a business or to make sure that his business funds and stocks are in the right position and condition . The amount of money in which an individual may need for purposes like this could worries because majority of individuals own huge and small-scale businesses and so because of this they will always need huge amount and small amount of money at different intervals in order to facilitate their businesses . There is actually no amount of debt that is considered to be as too much debt but what is definitely advice is that as we are collecting these loans possibly from Business financial institutions or from a friend we must endeavour to ask ourselves the question of how to repay back the loan possibly if the reason why we needed the loan doesn't turn out to be as planned or as expected .

Your sincere answers to these questions will totally enable us to know whether you are so fit and capable to accept the loan or not . There are some businesses that have not flourished even after the business owner might have collected a loan .

 

[King bell]

Thank you for bringing this thread up, you have stated some useful ways in which one can avoid debt, here is my little contribution.
No one wants to be in debt, but sometimes it's unavoidable. If you're struggling with debt, here are some tips to help you avoid being in too much debt.

1. Make a budget. Knowing how much money you have coming in and where it's going is a crucial first step in avoiding debt.

2. Live below your means. Spending less than you earn is one of the best ways to avoid debt.

3. Save money. Having a cushion of savings can help you avoid debt if unexpected expenses come up.

4. Invest in yourself. Learning how to manage your money wisely can help you avoid debt in the future.

5. Seek professional help. If you're struggling to get out of debt, seek out professional help from a financial advisor or counselor.

 

[allison001]

Personally , I do not advise people to just get a loan to start up anything because in most cases you cannot predict the future of your business . Although you will always be interested if your business succeed but at the same time we cannot give accurate prediction if a newly established business if would succeed or not except you have done all the necessary research to support that the business will be successful.

Apart from that , I can only encourage people to only get a loan when they have a way of paying back the loan without directly involving the business which the loan was collected for. I do not see the need for people to be getting a loan and after a few month they start using the business capital and still pay back the loan. It doesn't make sense. This is just one of the reasons why so many people's business are not even succeeding.

 

[Sotherefore]

Sometimes , we have so many reasons we may decide to get a loan to start up anything , but at the same time it is also very important for us to put into consideration the possibility of us not being able to pay back the loan we collected most especially for people that do not have a back-up plan of raising money elsewhere

In most cases , it is always better for us to try as much as possible to avoid getting loan to start up anything because the possibility of you succeeding in such business might not be much and in most cases you might not be able to make it in the business. Start up a business with your capital alone for safety.

A lot of people also at the same time are always fund of getting loan to buy clothes for themself or to do things that will not help them generate back money in any way like celebration of birthday. We must try as much as possible to be satisfied with what we have.

 

[Augusta]

The thing with debt is that you need to make conscious efforts not to owe. Some people just have the mindset that if they do not have the money at that time they will borrow. Some people would even conclude that even federal government owes. So it is a conscious thing to do if you don't want to be a debtor that your debts runs into thousands of naira or dollars.

Even as a business owner you need to always try to pay back your money in bits. This way you would finish your payment before you even know it. When once you start this way you would inculcate the habit and you would everly disturbed when you start owing. They are people with no conscience when it comes to owing others and not ready to pay.

So buy what you can pay back and reduce the expenses of your business so that fight huge debt.

 

[Ayuba Ernest]

No one wants to be in debt. It's a scary feeling, not knowing how you're going to make your next payment or when you'll be able to pay off your debt entirely. But being in debt doesn't have to be a lifelong sentence. There are steps you can take to avoid being in debt, or to get out of debt if you're already in it.

Here are a few tips on how to avoid being in debt:

- Make a budget and stick to it. This is probably the most important thing you can do to avoid being in debt. If you know how much money you have coming in and going out each month, you can make sure you're not spending more than you can afford.

- Limit your use of credit cards. Credit cards can be helpful when used responsibly, but they can also be a quick way to get into debt. If you're using a credit card, try to pay it off in full each month so you're not paying interest on your purchases.

- Shop around for the best deals. Don't just go with the first loan or credit card offer you get. Shop around and compare rates to make sure you're getting the best deal possible.

- Pay your bills on time. This may seem like a no-brainer, but it's worth repeating. Late payments can lead to late fees and higher interest rates, which can make it harder to get out of debt.

- Use cash instead of credit. Whenever possible, use cash instead of credit cards. This way, you'll only spend what you have and you won't have to worry about interest or late fees.

 

[zCaups]

I think the most important thing to have is discipline and patience.

 

[Suba]

As an entrepreneur, before applying for a loan to a financial institution, both bank and non-bank, of course you have make a plan to use the loan money, whether to buy supplies, increase the number of machines, etc. Make an estimate of sales either per month or per quarter, so you know how much additional capital (the amount of debt you need), Open a financial statement and analyze your ability to pay debts, you also need to calculate the level of risk, pay debts on time, Avoid pay debts with other debts.

 

[Carpon]

One of the ways through which I always say this is possible
Is to know what time you take debts

In doing that, you must be conscious of what amount of debt you already have weighing on you. Avoid taking debts when you already have many pressing debts and demands on you.

Take debts strategically and do not allow your debt to be more than the amount you can offer. Meaning do not collect a debt that your income won't allow you to afford the comfort of settling it without getting into one financial strain or the other.

 

[Heartstrings]

Well, truly it is actually not a bad thing to borrow money but to me when you indulge on it too much,it becomes a problem,in the sense that it will be a bit hard for you to pay it back on time. You can avoid been on too much debt by saving some money,save what you can afford and it will definitely help you solve one or two problems.

Also make an investment,when you invest your money, it generates you more income and would save you from too much debt, also make a budget plan, when it comes to financial aspect it is good and advisable to make a budget,so as not to spend too much and at the end of the day fund yourself in debts. Stop spending extravagantly,some people tend to spend money anyhow without proper management,and when the money finish they will result to taking a loan or borrowing money from friends or family.

 

[eldavis]

For me, i believe one of the best ways to do this would be to simply avoid being in debt in the first place. Majority of the times, people go into debt simply because they borrow and one thing i have come to realize is that when it comes to borrowing is that it can be pretty addictive. Borrowing is more like gambling as well, you get addicted to it without even knowing you have an addiction for it. The best way to reduce debts is to avoid borrowing, no matter how small.

 

[Miki1]

Ways one can adopt to avoid too much debts in business are: avoid taking too many different loan facilities. Strictly monitor your expenditure. This can be achieved by keeping record. Avoid crediting too much to customers. Don't stock products that do not move faster. If there's the need to employ, do not employ over your income because employees salaries may lead you to run into debt if you don't have any back up. If you remove an item in stock quickly restock it. Do daily account taking.

 

[Axis]

Truth be told, it feels absolutely good to borrow money but it is very necessary for us to put into proper consideration the negative result that may follow if we end up delaying time to repay back the money in which we have borrowed. It is absolutely very necessary that each and everyone of Us understand that it is best to borrow an amount of money in which we are capable and able to repay when the time comes. One of the main reasons why majority of people are indebted to a financial institution or to another individual for a pretty much long time is because they borrow way too much than there are capable and able to repair when the time is due.

To be more effective in repairing back the money you have borrowed it is definitely important that we put into proper consideration the negativity that may occur if we fail to repay back the loan. However, what that mean is that we need to put into proper consideration some other strategy and ways we can use to repay back the loan even if the initial intention we seek in using the borrowed money for doesn't turn out to be as planned and as expected.