Being in debt especially a heavy one is a terrible thing at current economic downturn. Many has predicted this ‘Great Recession’ to be a prolong one lasting two years or more. If you are one of the many unfortunate ones, the best you can do is to keep afloat, keep stock of personal finance, find out why you are in debt in the first place, work at reducing the debt and hope for the best. We list here 9 tips that might be helpful for staying out of debt.

1. You need to change

You need to make changes to your attitude about money and behavior in order to have any result. How you value money impacts your spending decision. Find out why you feel good owning the latest tech toys even though you might not use it at all. Is it for vanity reason? Or is it for making up of lack of toys when you were a boy/girl? If possible, find out how much ‘coolness’ is worth to you. Getting out of debt is not a todo list or action items, its a lifelong commitment to a lifestyle change.

2. Cause and effect

Before you spend on your next purchase, check the consequence of your action especially if you are buying on credit. Shopping on credit card makes you feel good NOW, but the painful impact comes much later. Think about the future credit card bill and the pain it will bring before you buy. You would jump off a hot seat immediately because of the pain, why not for shopping on credit?

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