Ways to avoid debt?

I'm starting to think working as a journalist means being in constant debt.

I spend very little, yet I'm mounting a significant debt thanks to doctor bills and the $500 plus I'm dropping on replacing my car's brakes.

Does anyone have any success stories on getting past their debts? Anyone got some good tips?

 

I'm just now making enough that things like needing new breaks don't cause me to run up more debt. I consolidated my other debts (credit cards) into a personal loan and while I don't know if that was the best way to do it or not, I'm finally making some progress on the debt.

 

I think more than anything it's that feeling that you owe money.....And that fear that the collection agency will call and start demanding it. That's always fun.

But that sounds like a good idea, SC, you know exactly how much you're paying and how much you've got left to pay.

 

Sigh... I won't let this become a rant about how we're being kept in poverty for no better reason than tradition. "I got paid squat when I was young so you're going to take that same wage and like it!"

So I'll mention what I learned in a night class on this topic. The guy said you should devote 10 percent of your gross income (plus the minimum monthly payment, I think) to your highest-interest debt. Once you get that taken care of, move on to the next highest-interest debt. And so on.

SC, they let you consolidate without owning a house? Never thought that was allowed. Unless you've now put down roots while I wasn't looking...

 

Don't go to college and don't ever need medical care. Follow those two maxims and you should remain debt-free.

 

No house yet, Serve, but I do have a very good credit rating and my credit union at work is willing to work with poor starving journalists.

I've also heard that you should pay the minimum on all but one debt and apply all the extra to the lowest debt, so you feel like you're making progress on them.

 

Debt is inevitable, but keep in mind that there's good debt (secured - mortgage and car payment are two examples) and bad debt (unsecured - too much credit card debt, collections, etc).

 

if you don't have debt (student loans) coming out of the gate, you're in better shape than most. but saving and not spending more than you make are two keys to avoiding debt. i understand that's difficult. my first job was under 20k. avoiding high car payments -- or car payments altogether. little or no credit card debt. sometimes, you put a serious hold on activities you enjoy. search for extra income -- freelance or a second job. there is no easy answer.

 

mrs. petty and i have owned our cars outright for several years.

we're looking to get a replacement for her now, and probably will go with a couple-year-old honda and just buy the fucker outright.

 

And no tips on how to get rid of debt if you have them. Typical of the I don't have debt crowd.

 

Save. Save. Save.

Don't buy what you don't need.

Credit card debt is the worst; paying 15-20 percent is nothing but a scam. Pay off your credit cards every month. Not most months. EVERY month.

 

If you can own property instead of renting it is a big step in the right direction.

Also, big car payments are tough.

Look at what your rent is and then see a mortgage agent. Be sure it is a trust worthy agent. You will have a life long relationship with them if you stay in a same area.

Owning property is so nice when you do your taxes.