One of the best ways to avoid debt and ultimately bad debt loans is to monitor your credit score closely. Always get your free credit report online every year and try to monitor your FICO score as well. By checking your credit report, you'll see all of your debt in one place and you can ensure that all of the information on the report is correct. Choose any one of the credit reporting services and watch your credit report closely. Next, avoid making late payments any way you can. If you need to automate your bills, then do it. If you need to hire an accountant to come in once a month, then do it. You'll save more money than you put into either investment. Finally, read up on money management. Head to your local library and look at best sellers or look up books on the internet so you can see which ones get high user ratings and cover the topics you need. Educate yourself and you'll be able to avoid bad debt.
