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Needless Debt is a Needless Burden – How to Avoid It


When it comes to sound debt management plans, there are no silver bullets. With that said, a knowledgeable debt counsellor could do wonders for your financial health. In turn, good financial health results in lowered anxiety and a better general state of well-being. Taking care of one’s debt in a punctual, regular, and consistent manner, in other words, translates directly into a happier, less stressful lifestyle – something we could all do with a little more of these days.

Being specialists in their field, debt counsellors are able to advise clients on the best possible management plan based on their individual circumstances. One size, as it were, doesn’t fit all. The type of information a debt counsellor would need to analyse right at the start of the process includes a detailed list of a client’s monthly expenditures and the exact details of a client’s current debts.

Before getting to the point where a professional counsellor becomes an absolute necessity, however, there are a few things one can do to alleviate the burden.

The first of these is as straightforward as it gets: avoid needless debt like it’s an unknown tropical disease. Needless debt is not the same as rational debt, and there are many instances in which taking a loan is a truly sensible thing to do. For example, a home loan that will eventually leave you with an asset that you own completely.

Needless debt, on the other hand, is not only the type of debt incurred by credit card spending on non-essential goods and services; it’s also the type of debt you incur when paying more for a good or service than is required. To clarify this point, why splurge on an expensive vehicle when a more budget-friendly option will work just as well? The key to sidestepping the trap of needless debt is living well within your means.

Please also bear in mind the fact that if you buy on a credit card, the item costs you more than the price you paid the retailer the moment it charges you interest.

Yet another instance of needless debt is the amount accrued from not paying off the full amount within the shortest possible time. Think about it like this: should you opt to buy a non-essential good using money that could have been used to settle debt, the purchased item is costing its shelf price, in addition to the amount of interest accrued on an outstanding debt.

It may seem quite strange, but even if you buy an item identical to one bought by someone else (at the same asking price), if you have a higher level of indebtedness, you are paying more for it.

A tip that you may hear from a debt counsellor concerns the prioritisation of debt repayments. That is, debt repayment should rank, in terms of importance, along with the essentials. Never make a payment less than the interest on a loan, and always repay as much as possible every month. Ideally, one would set a repayment figure as high as is realistically achievable and then set about building a budget around that amount.

Avoiding needless debt, like many things in life, is easier said than done. Whereas we make plans and schedules, the unforeseen may occur, throwing our careful strategies into complete disarray. The unforeseen, however, is often used as an excuse for poor discipline. No debt counsellor can force you to stick to a debt management plan. You, dear reader, are the only one who can put it into action – and stick with it even when it’s difficult.

Could debt counselling help you? Almost certainly! Get in touch with FreeMi today and learn more about our app and services.