Don’t Borrow Trouble: Smart Ways to Avoid Debt
Let’s face it—debt sounds like something far off, like something adults deal with when they forget to pay bills or swipe their credit cards too much. But here’s the truth: your choices now as a teen can affect whether or not you end up stuck in debt later.
Whether you’re borrowing from a friend, using Buy Now Pay Later apps, or dreaming of that first credit card at 18, it’s super important to understand how debt works—and more importantly, how to avoid it.
You don’t need to be a financial genius to stay debt-free. You just need some smart, simple strategies that you can actually use in real life.
What Is Debt, Really
Debt = money you borrow + money you have to pay back. Sometimes with interest (which means you pay back more than you borrowed).
Examples teens might see:
Owing a friend or sibling for lunch or a movie
Using “pay later” apps for clothes or games
Taking out student loans in the future
Getting a credit card too early—or using one badly
While not all debt is evil, unnecessary or unplanned debt can sneak up fast and become a real problem. So let’s talk about how to stop that from happening.
Smart Ways To Avoid Debt
1. Don’t Spend What You Don’t Have
This is rule #1. If the money’s not in your account or wallet, skip the purchase—or save for it instead.
Reality check: Just because it’s on sale doesn’t mean it’s a smart buy.
2. Use “Buy Now, Pay Later”? Think Twice.
BNPL apps like Klarna or Clearpay might sound helpful, but they’re basically mini loans. And if you miss payments? Boom—late fees, credit score damage, and stress.
“Even small debts can form bad habits early. Teaching teens to delay gratification is a powerful tool for long-term financial health.”
3. Stick to a Budget (Yes, You Need One)
Budgeting isn’t about being boring—it’s about knowing where your money’s going. When you track your spending, you're less likely to overspend or “accidentally” go into debt.
Use teen-friendly budget apps like GoHenry, RoosterMoney, or a Google Sheet.
4. Save for Stuff You Want
Impulse buying is a debt trap. But when you save up for something—even a few pounds at a time—you avoid the “borrow now, panic later” cycle.
Set a goal. Save bit by bit. Buy when you’re ready. No guilt, no debt.
5. Start an Emergency Fund
It doesn’t have to be much. But having even £50–£100 saved means you won’t need to borrow if your phone breaks, you lose your bus pass, or your weekend plans change.
Pro tip: Aim to save a little each week from pocket money or part-time job earnings.
6. Understand Credit Before You Use It
You might be offered a credit card at 18. Tempting, right? But credit cards aren’t free money. They’re tools—and dangerous ones if misused.
Learn how they work, how interest adds up, and how to use them responsibly before you ever swipe.
Final Thought
Avoiding debt isn’t about being scared of money—it’s about being smart with it. When you understand how borrowing works and build strong habits now, you set yourself up for a stress-free future.
So the next time you're tempted to “borrow now, deal with it later,” remember this: you don’t need to borrow trouble. You’ve got the tools to stay in control.
Future-you is already proud.
Money Saving Expert is a journalistic website that aims to provide the best MoneySaving guides, tips, tools and techniques for people of all ages.
