Female hiker with hands in the air Budgeting

How to Set Effective Goals to Avoid Personal Loan Debt

In today’s society, personal debt is very common. There are many reasons for this, including, medical bills, “want it now” mentality, emergencies and so on. However, it is possible to avoid personal loan debt by setting realistic money goals.

Here are a few examples of effective goals to help you avoid personal loan debt:


In order to avoid personal debt, it is important to set budgeting goals. Be specific, know the exact amount you want to spend on each aspect of life for your household and personal needs to be fulfilled. For example, know how much you need to spend for groceries every week and stick to it. Take your budget extremely seriously and do not make excuses to overspend. Find a way to stay under your designated budget, which may require letting things go that aren’t the essentials. Furthermore, budget for maintenance items including your car, AC and heater, and home improvements.

Have an Emergency Fund

Unplanned expenses are going to happen, that’s life. It is important to have a saving goal. Decide upon a good amount that you feel will cover an emergency. This can fluctuate depending upon the city you live in. Some places are more expensive than others. Communicate with your family to agree to an amount. Think of emergencies you have had in the past and compare those prices.

Plan Your Holidays

Always have a plan and budget for holidays. For example, you know that Christmas comes every year. Budget for this throughout the entire year, to ensure you are ready to make purchases when the time comes. This applies to birthdays and anniversaries as well.

Setting simple money goals can prevent unnecessary personal loan debt. Be prepared and always have a plan.

If you do need assistance with debt or personal loans, contact us to discuss your situation. We know every situation is unique, so we will take time to consider all scenarios.