How can I avoid debt from the start? This is a very legitimate and important question as no one wants to end up in situation where they are blacklisted. However, it is important to build up a credit history so there is balancing act that you need to conduct so that you can save yourself from getting a bad credit rating.
Firstly, should you for any reason need to take out a loan, it is always best that you do not take more than you need as when you have to start paying it back is where the problem begins. Should you have taken out too much, your loan repayments will be greater per month and therefore you may find yourself in a situation where your repayments are more than you can afford. This means that you will rely on credit to survive.
Another finance tip is to work according to a budget so that you never spend out of your means. Included in your budget should be a deposit in to a savings account of some sort which can build interest and grow your money. If you are doing this but still wish to build up a credit history then the best thing that you could do would be to open a store account and make sure that you pay it back on time every month. Even with small amounts taken on credit can reflect on your credit rating by making timely repayments.
The reason why you need to build up credit rating is so that should you one day need to take a loan for a house or a car or for any other reason, the banks will have some record of you repayment history. This will stand you in good stead if you have kept up to date with your repayments. For further information you should contact your bank or an accountant to give a more detailed answer to your question of “How can I not get into debt from the start?”
The following video will hopefully help some people to become and stay financially independant.