How are people able to spend more than what they make, without going into debt?
What are two things people can do to avoid debt?
Some common-sense rules can help individuals avoid debt — at least the level of debt that cannot be repaid when due:
- Pay with cash whenever possible.
- Stay within your spending limits.
- Avoid impulse purchases.
- Avoid “buy now, pay later,” “interest-free financing” and like offers that merely postpone debt.
How can a business avoid debt?
How to avoid bad debts in business?
- Filter your customers. Not all customers are good for your business. …
- Require up-front payments. …
- Set reasonable credit limits. …
- Provide clear payment terms and penalties. …
- Improve your accounting. …
- Implement strict collection procedures. …
- Use cloud-based software for debt collection.