How to Avoid Consumer Debt A Story and Reflection

 

I still remember a few years ago when a close friend of mine, let’s call him Arif, had just received his first credit card. At that time, he was very excited and said it would make shopping easier. On the very first day, he used it to buy the latest sneakers, and the following weekend he went on a shopping spree for clothes. His words were, “Don’t worry, I can pay in installments.” At first, it seemed fun and convenient. But as time passed, the installments piled up, the interest grew bigger, and eventually most of his monthly salary was spent just to cover debt. That was the moment I realized how dangerous consumer debt really is.

If you think about it, many people around us fall into the same trap. Once their salary increases a little, their lifestyle also goes up. As soon as they have access to debt—whether it’s credit cards, online loans, or buy-now-pay-later services—they immediately use it to satisfy desires. The truth is, not everything we buy is a real need. Personally, I believe consumer debt is one of the biggest reasons why many hardworking people still feel stuck in life.

Consumer debt is different from productive debt. Productive debt is used for something that generates income, like starting a small business or investing in tools for work. Consumer debt, on the other hand, only serves instant gratification. It could be buying the latest gadget, going on an expensive vacation, or hanging out at fancy cafes every week. I’m not saying we shouldn’t enjoy life, but if enjoyment always comes at the expense of debt, in the end life only gets heavier.

I almost fell into the trap myself. Early in my career, I was tempted to take a loan to buy a motorcycle that was far above what I could realistically afford. It felt exciting to imagine riding a sport bike, but when I recalculated my monthly expenses, I realized the installment would leave me with barely enough for other needs. Luckily, I decided to delay that desire. Instead, I bought a simpler motorcycle, and with the remaining money I could save. That experience taught me that delaying gratification brings much more peace than living under the pressure of installments.

Many people think consumer debt isn’t a big deal, because they assume they can always pay it off later. But what they often forget is the interest costs and the psychological burden. Imagine your monthly salary is already “cut off” automatically to pay debt. Saving becomes difficult, investing gets delayed, and in the end, stress begins to build up. In my opinion, this is the real trap of consumer debt: you end up working not to build your future, but just to cover your past.

If you ask how to avoid it, the answer is not simple, but there are some practical things that help. First, we need awareness of the difference between needs and wants. Needs are things like food, transportation, and shelter. Wants are things like buying new shoes when the old ones are still fine. I often remind myself with a simple question: “If I don’t buy this, will my life fall apart?” If the answer is no, then it’s not a real need.

Second, make a simple financial plan after payday. What I usually do is divide my salary into categories: basic needs, savings, and leisure. This way, I know my limits when spending money. Of course, there are temptations outside the plan, but when I look at my notes, it’s easier to resist. I believe small discipline like this is a strong shield against consumer debt.

Third, don’t get carried away by trends. I’ve personally experienced how easy it is to buy something just because friends are doing it, even though I didn’t really need it. In the end, the item just sat unused at home, while my savings disappeared. From that, I learned that chasing status never ends. True happiness doesn’t come from expensive stuff, but from being free from monthly payments.

Fourth, if you really need to borrow money, make sure it’s for something productive. It could be to start a small business, to buy equipment that supports your work, or for education. That kind of debt still makes sense because it can potentially bring a return. But consumer debt like shopping sprees or vacations abroad without savings—those should really be avoided.

I believe everyone has their own story with debt. Some have successfully escaped, while others are still trapped. But from all the stories I’ve heard, the conclusion is always the same: life is much calmer without consumer debt. It’s not easy to resist desires, especially in today’s era of social media that constantly shows off lifestyles. But in the end, happiness doesn’t come from what we display outwardly, it comes from the inner peace of not being burdened by debt.

Let me close this with a personal reflection. For me, avoiding consumer debt is not only about money it’s also about mentality. A person who can control their desires has control over their life. On the other hand, someone who constantly falls into consumer debt is actually being controlled by their own impulses. If we want to live more freely, with a brighter future, the first step is to learn how to say “enough” to ourselves.

Because at the end of the day, money is important, but freedom is far more valuable. And one way to achieve that freedom is by not letting ourselves become slaves to consumer debt.