Save up, pay cash for a cheap car, and pay yourself the car payment. I have no car payments, so I’m already saving up for my next car. If you want to find out more, you can read my article about what cars really cost, and use the car costs calculator to see for yourself.

A good debt is a debt on something, that either grows in value fast enough, or produces enough regular income, or a combination of the two, to pay not only for the interest on the debt, but also enough more to justify your effort and time spent.Good Debt In other words, good debts make you more money than they cost you.

People paying by credit card are willing to pay more than double the price for the same item than consumers paying by cash. However, if you know your credit card is a problem for you, rather use a debit card.

Every time you pay off the smallest loan you have, use the additional money available at the end of each month – that you would have spent on loan payments – to tackle the next smallest loan in the list.

To consolidate your debt does not help the problem. If you want to beat debt, then you need to deal with the real problem: The attitude that debt is OK.

If you pay premiums or contributions to a savings plan on which you only earn interest of say 9%, but on the other hand you have to pay 19% interest on your bank overdraft account, and you continue with this practice over a period of time, you will eventually save yourself bankrupt!

However, the more debt you have to repay, the more likely it is that you will: choose a work that makes you more money, but takes more of your time, choose a work that makes you more money, but takes more of your energy and leaves you drained, which means the time you get to spend with your family is not of the same quality, choose to work more overtime – time you could have spent with your kids, choose to take yet another business trip – because you really need that job – instead of telling your boss to go screw himself.