After convincing you that you cannot do without a particular product, a commercial entity goes on and tries to convince you that you afford its product. It does so by giving away discounts or split a hefty product price into monthly payments. Splitting expensive prices into monthly payments is a commonly used technique. Such techniques make an unaffordable commodity or service, seem affordable.

A lot of people get tricked by this commercial promotion. It is very common that we say to ourselves “I can afford $2.99 a month!” without thinking of other expenses that we have. Yes sure I can afford $2.99 a month, but I cannot afford one thousand $2.99 monthly payments.

So rule number one to stay away from debt is to put a particular expense into contest. Do you really need to spend money on this particular commodity or service? If yes, does this expense jeopardise your financial position? If it does, simply refuse to buy it.

Rule number two is to avoid credit cards. Again credit cards give you a false impression that you can afford something which you cannot afford. “With this card you can get $3000 credit and then pay us later!” Before you actually buy something that costs $3000, make sure you have already put aside $3000, so that when the bill of the credit comes along you can pay it straight away.

If you follow religiously the above two rules, you will for sure avoid getting in debt. Keeping a debt free life pays, since you will enjoy life as is, recognising your financial limits and learn to live with them. Getting in debt will not make you feel better but worse due to pressure that debt brings along with it.