How To Stop Accumulating Debt Once And For All

                By                    Gabrielle Olya                

When you’re in debt, it can seem impossible to get out of debt. But the first step to getting out of debt is to stop taking more on. Of course, this is easier said than done — but it’s not impossible. Here are a few tips to help you stop accumulating debt once and for all.

Read Day 21: Top 3 Expert Tips for Managing DebtGo Back To Day 20 of Living Richer: 3 Signs You’ve Found Your Dream Job

More From Your Money: Choose a high-interest saving, checking, CD, or investing account from our list of top banks to start saving today.

Pay For Everything With Cash or Debit

When you make all of your purchases with cash or a debit card, you can only spend the money you actually have. If your debit card offers overdraft protection, turn this off so that you aren’t able or tempted to spend more than you have.

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Put Any Plans for Major Purchases on Hold

While you’re in the process of paying off debt, delay making any major purchases.

“Prioritize what is most important today versus what would be nice to have,” said Amy Richardson, CFP at Schwab Intelligent Portfolios Premium. “This might mean pushing out a home purchase a couple of years or postponing a vacation. Making these hard choices today will provide peace of mind and help you achieve your financial goals for the long term.”

Once you’ve paid off debts, you can make it a priority to start saving for these purchases so you won’t have to take on new debt to make them.

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Avoid Temptations To Spend

Stay away from the stores and websites that tempt you to spend unnecessarily.

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Prepare For the Unexpected

Many people go into debt due to unplanned expenses such as a medical emergency or an unexpected home repair. Saving money in an emergency fund and purchasing the appropriate insurance policies for yourself, your family, your car and your home can help ensure that you won’t rack up debt if the unexpected happens.

Day 23: Join us tomorrow for our Living Richer series when we look at how to pay your debt off in a manageable way.

Jaime Catmull contributed to the reporting for this article.

Last updated: July 22, 2021