Wants vs. Needs

• Although it may seem overly simple, one way to avoid debt is to reduce spending as much as possible. When creating a household budget, many people simply do not take the time to distinguish between needed items and wanted items. Thinking about money before it is spent can help save money by eliminating impulse purchases and unnecessary items whose purchase can be delayed or avoided altogether.
  
  

Credit Cards

• Cutting the credit cards is a must for those looking to get out of debt.Debt concept - cutting a credit card image by Sophia Winters from Fotolia.com
  
  When attempting to get out of debt, the first step should be to stop using credit cards and consider canceling the accounts. Many people try to keep their credit cards in case they have an emergency, but it is far too tempting to use these cards when money gets tight. The best emergency plan is a savings account, not a credit card.
  
  

Starting Young

• Since it is easier to prevent debt than to manage it, it is important to start teaching children how to manage money before they get into trouble. Unfortunately, statistics show that getting into debt young is common. According to the New York State Higher Education Services Corporation, in their last year of college, 62 percent of students have four or more credit cards. Final-year students carry an average of $4,100 in credit card debt alone.