Will a little debt hurt? For most students and ex-pats moving to Italy, getting into enormous debt begins with this question. When you start buying little by little on your credit card, soon, you will be in debt before you know it. But what is bad in little or lots of debt?  Below are what little or lots of debt will cost you and why you need to save rather than going into debt.

1. Debt encourages you to spend than you can afford

Something about debt is that it tempts you to keep spending even when you cannot afford it. Part of the debt allure is that you can get the most emotionally happy when you start getting new things any time you want it without the immediate pain of not having money. However, this expenditure will finally catch you up and land you in outstanding debt, which is not suitable for you.

2. Debt deprives you of your future income.

Whenever you take a loan or charge your credit card, you indirectly take the money that you intend to gain in the future. You never know when your income will adjust, so you should not mortgage your future by using all your income on paying a debt.

3. Saving helps save 50% on all your purchase + 24% for foodstuffs.

If all your transactions are generally billed on your credit card and your credit cards are not paid out every month in full, you will likely spend at least 50% higher on all your purchases due to the additional interest charges. You need to avoid debt so that you can split your pricey credit practice by saving your shopping in advance if you rely on your credit card to make your lifestyle more effective.

Savings may even store food when they are on sale (items that are nonperishable or frozen). One author suggests that people who can save 24 per cent a year on their food bill can miss one supermarket each month.

4. It enables you to get out of debt.

You must have some money saved if you ever want to get out of the debt. It sounds ironic. The credit cards will never be paid off, though, if you need to continue to use them in an emergency. Even if you are a great planner, statistics show that at least half of us experience an unforeseen cost every year (and half of those will be unexpected car trouble).

You can save $500 to $1,000 as a contingency fund before you start paying your credit cards aggressively. Then you can reimburse them out of the reserve fund instead of adding them to your credit cards when unforeseen items occur.

5. Yearly Expenditure

You need to save on annual expenses if you want a healthy, relatively stress-free financial life. This includes gift money, holidays, maintenance for vehicles, minor home repairs, appliance repairing, property taxes, and likely revenue taxes. It may be tempting to refinance a mortgage to pay off debt or to use a credit line to pay off high-interest credit card payments, but without paying them off, there is a risk that expenses will endlessly be credited. Saving for these costs in advance is the safest way to handle this kind of. Not only will it save you money, but it will also save you calmness.

6. Emergencies

We all know that we still need to be prepared as much as we hope there will be no emergencies. You may have to travel on an emergency route or have a car accident or breakdown; severe weather can flood your cellar or crack your pipes or fly to the beloved’s funeral. A family member may develop a health problem.

Any such emergencies can be costly, and we all know that we will probably face some trouble from time to time. So why not brace yourself rather than become an emergency victim. This is one of the significant reasons you need to save money.