This little list of what not to go into debt for is obviously going to be subjective, as there are those that feel borrowing money for anything or any reason is OK, as long as you can afford to repay the debt.

And to some extent, that is all fine and OK. However, not everyone can predict the future of their finances, and things can occur to change our income and basic expenses. So some financial counsellors advise against taking out a loan for certain things, and to try and save the money for them.


We all love our holidays, nothing like working 50 weeks a year to get 2 weeks off somewhere sunny, warm, and peaceful. And we need our holidays even more now after being locked down and no travel for almost a full year!

But in as much as we love our holidays, going into debt for one may not be most sound of financial choices.

If you take out a £1,000 loan to be paid off in 12 months, it may seem like a “doable” situation, however, once the loan is paid off, you would need to borrow again if you wish to go on holiday again.

If possible, it may be best if you try to save money each month towards your holiday. Then what you have saved, you base your holiday on that amount. So for one year it may be a week in Wales or Cornwall, the next year abroad.


Every bride wants her wedding to be the best! They want it to be perfect, and have all the trimmings, the limo, flowers, the dress, the huge ring, the honeymoon, and the reception.

Since the lock downs, we have not had the big weddings, but they are on their way back.

Going into debt for a wedding only begins the relationship under financial stress. And money and finances are a very large percentage of why marriages fail and end in divorce.

Having a nice wedding you can afford, and not being in debt is a good start to a lifetime together. Plus years later, when you are more financially sound, you can have a second wedding or second honeymoon.


For many there is not a month out of the year where we do not have to get a gift for someone.

There are birthdays, weddings, graduations, anniversaries, etc, it can all add up. And of course we wish to be gracious in our giving, and give nice gifts.

And let us not forget Christmas!

We want our children to have all the things we didn’t have, and then some.

Starting a Christmas saving fund is a good way to not use credit and go into debt for gifts at Christmas. Also making unique gifts for people throughout the year, may be an option.

My family gives meals for birthdays. We ask what is your favourite meal, then make it for them, freshly made, and home made.

It works for us.

Clothes and/or Gadgets

“Retail therapy” has been around for a long time, and sometimes getting out and shopping, especially now after the months and months of non-essential shops and stores being closed, seems like a dream.

However, if you use that credit card to make purchases with, you are using credit. If you pay the balance off in full each month, good for you, but many of us don’t pay the balance in full.

Saying you need or want the latest and greatest mobile phone, which are dangled in front of our faces each year, or a new big screen TV, which then requires a home theatre system, is a way of staying in debt.

These are not things to take out on finance, although their price tags may demand it. Save for them. You will value the item more if you save for it.

Again, the choice of taking out a loan, being in debt for certain things is yours, however, give it some thought, and maybe take a “cooling off” period prior to signing the finance agreement or loan application.

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