It is an incontestable fact that many people are deeply in debt, and in no way of getting out. Indeed, the current global economic crisis, which most of the world finds itself in at this point in time, is caused to a great extent by an irresponsible attitude to debt. Evidence of this statement can be found in the fact that in Oriental countries (in which people tend to have a more cautious approach to debt taking), the effects of the financial crisis have been less felt, than in our occidental countries, where we tend to have a more ‘liberal’ attitude to debt, where the word ‘liberal’- as used in the debt and debt management circles, is really a politer word for an ‘irresponsible’ attitude towards debt.

      Granted, there is really no way an ordinary person can avoid falling into any type of debt. Most of the transactions in today’s world are carried out on credit. For instance, even in almost every employment situation, you have to render services, and be paid later, meaning that you have given your services of credit. In a similar manner, you tend to have people render services to you, only for you to pay them later, meaning that - at least for the duration of the transaction - you are indebted to such service-givers.

      Yet the inevitability of debt notwithstanding, there are times when one can find themselves enslaved to it – and it is at this point where the frontier between responsible use of credit and irresponsible use of credit can be drawn. So how does one avoid falling into irresponsible debt situations, or what may be referred to as ‘bad’ debt situations?

      One way is of course to ensure that you live within your means. You shouldn’t buy anything you couldn’t afford buying in cash just because you have a way of buying it on credit – because ultimately, the debt will have to be paid, putting you into financial distress.