With so many people in the world facing debt these days, with no signs of the trend slowing any time soon, it’s difficult to imagine how you can avoid getting into debt yourself.

The cost of living is on the increase and even education is more of a privilege than a right – and it’s one that will cost you for year long after you’ve done your duties as a student.

In an effort to help you avoid joining the teeming masses of people suffering the wrath of scrupulous debt collectors, we’re taking a look at some important tops that can help you to stay away from debt when you’re young and hopefully give you a better chance of a debt-free start to the rest of your life.

Know what you owe

If you have bills to pay and have taken out loans in the form of a student loan or similar, then it’s important you keep yourself in the know when it comes to what you owe. Make a list of your loans and credit and the interest rates at which they’re charged. Then prioritise the paying off of debts with the highest interest rates first. Not only will this allow you to tackle your existing debt head on, but it’ll also help you to avoid signing up for another loan without taking the interest rate into account, allowing you to decide whether you really can afford to take it out or would do better to go it alone.

Build your credit score and pay on time

Maintaining a good credit score is very important, particularly if you hope to purchase a home, apply for a small business loan or finance a new car in the future. Pay your bills and repayments on time to ensure that your credit score stays positive, which will in turn give future loan and credit providers with certainty that you’re worth investing in.

Plan to fail

What we mean is that you need to live as if an emergency could occur at any time. When organizing your finances, and after considering how much money needs to be allocated to loan repayments or living costs, set aside a small amount every month for an emergency. With the certainty of the job market continually fluctuating, it’s important you take a leaf out of older generations’ books and save for that rainy day when a stash of cash could be the difference between prospering and total ruin.

Get an early start on saving

When it comes down to it, you have the massive advantage of being young, which will allow you to save early and save often. Take advantage of this long-time horizon and allow your money to grow. You have decades ahead of you and starting today means you have time to weather the ups and down of the market, while taking advantage of compounded interest. Your age is also a plus for those who’re considering life insurance, since it’s often less expensive for young buyers.

About the author: Robyn Porteous

Robyn Porteous is a writer adept at turning coffee into content. She writes on a freelance basis for Debt Reverse, which offers debt management plans for individuals of all ages, who’re struggling to meet the demands of their debt. More of her writing can be found on her Google+ page.