The best way to avoid debt is to be proactive about managing your money. Avoiding debt requires you to establish a sound financial plan and steer clear of the foolish ideas that bring short-term satisfaction, but long-term hardship on the bank account. You can avoid debt by following the basic rule, spend less than you earn. Learning how to say no to buying stuff you don’t need is one of the smartest ways to stop paying for your past and start building your future. Reducing your unnecessary expenses can give you extra money to put toward getting out of debt. Another best ways to avoid a debt is to have an emergency fund. This can be done by ensuring one has savings that equal 6 months’ salary.