The Core Problem of Debt

“A debt problem is, at its core, a budgeting problem.”

-Natalie Pace

I believe that a majority of debts can be avoided by simply budgeting. Yes, I understand that there is occasionally something like a medical emergency that is very difficult to prepare for that can result in medical debt, but for the most part budgeting can help you avoid going into debt.

Budgeting to Avoid Auto Loans

The average auto loan balance is $18,500 in America. That’s a pretty sizable chunk of money, so how can it be avoided? Savings, discipline, and patience; that’s how. First, you have to save some money to put toward buying a car. Then, you have to have the discipline not to spend that money just because it’s burning a hole in your pocket. You also have to have the discipline not to cave in to the “I want it now!” mentality that is…