A common characteristic of people who go into debt is their inability to defer a purchase. They tend to buy large ticket items soon after they decide they have a need. For example, they may decide they need a new vehicle and within a few days they have signed on a loan for their new car.
People who have good habits of staying out of debt are much more likely to delay a large purchase. They may eventually go ahead and purchase the car (or whatever it is), but by waiting they get more of a chance to evaluate their needs and consider all the variables. Someone who has a debt free mindset is much more likely to check out the total cost (insurance, repair, etc.) of a vehicle before taking out a loan. By taking the extra time, they can make sure they don’t get surprised by unexpected expenses. Also they are better able to understand their own needs and potentially get a better deal. By waiting they are more likely to make a purchase that meets their actual needs instead of their perceived ones.
This isn’t to say that someone living debt free can’t be decisive. They just understand that all options should be considered before spending large amounts of money–especially when that means taking out a loan.
Deferring a decision to buy something is often the wisest thing an individual can do to stay out of debt.
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