Avoiding consumer debt: five reflexes to not borrow for a want
AmanaFi team · Updated · 1 min read
Going into debt for a comfort purchase ties your future income to a past pleasure. Five simple reflexes let you buy what matters without debt, by saving first.
Five reflexes
Apply them before any big purchase.
- Wait 24 hours, and 30 days for a big purchase.
- Work out the monthly saving needed to pay cash.
- Look for an alternative: second-hand, rental, sharing.
- Check the effect on money left to live on and other projects.
- Ask: is it a need or a comfort?
Turn the purchase into a project
Set a goal, a date, a monthly sum, and save. Reaching the date with the money is a win that spares months or years of repayment and worry.
Genuine necessities
A vital need (urgent care, housing) sometimes cannot wait. In that case, prefer an interest-free loan from relatives, an interest-free payment facility or compliant financing, and then build an emergency fund so it does not happen again.
Frequently asked
How do I resist adverts for credit purchases?
By remembering the total cost to pay, not the instalment. Always calculate the final price and compare it with the cash price.
Put it into practice with AmanaFi
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