If you ask your friends whether they are in debt or not, you will discover that most of them took at least a few loans in the past.
Taking loans can be avoided in the first place if a person learns how to spend money wisely. A person needs to learn to control his spending habits.
Only that way can he remain debt free or reduce debt if he has a debt to pay off. Staying away from debt might not be that difficult as most of us tend to think.
Being a smart shopper is something that can be learned easily. I am going to give you a few tips on how to do it.
1. Make plans and then stick to them. If you want to reduce your debt, you will need to learn to make plans and then stick to them. Take your time to think of how you are going to spend your money this month.
Think about what you are going to buy next time you go to a local supermarket. Create a shopping list before shopping for groceries and try to stick to it.
2. Never shop on empty stomach. If you do, you risk finding yourself in a situation in which you will spend more money on groceries that you planned. If hungry while shopping, you might want to purchase food that you do not need.
3. Prepare your own coffee at home. If you need to drink coffee in the morning, try to prepare your own coffee at home. Buying coffee in places such as Starbucks can be pricey, especially if you are going to visit this place often.
The same rule applies to your lunch. Bring your lunch with you to your office instead of trying to eat something near your workplace.
4. Keep your credit cards only for purchases you planned or discussed with your spouse. Unplanned purchases can be detrimental to your credit history if you do not plan them properly. If you really need to buy something, always use cash.
5. Take advantage of sales and promotions. Sales and promotions became part and parcel of our lives. Waiting for your desired item to go on sale is a smart move. Sooner or later, the item you want to buy should be promoted.
6. Only buy things that you need. Before you buy anything new, ask yourself a question whether this is something that you really need. Many people buy items that are not absolutely necessary and therefore waste plenty of money.
Try to be happy with what you have and you will discover that you can pay off debt in no time.