There is no doubt that debt creates a burden for millions of Americans each year. Especially relevant to young workers and graduates, looming debt can cause stress and hardship down the road. It often stands in the way of important financial goals.

Three of the largest sources of debt in the United States are student loans, credit cards, and mortgages. For many people, these are necessary; for instance, loans and credit cards help fund and cover important expenses such as higher education, monthly bills, and home ownership. In that respect, borrowing is helpful, but it can also cause a negative impact if handled wrongly.

While taking out a loan or charging the credit card helps cover expenses, debt builds each and every times these tools are used. Debt is a serious issue in this country, so it is extremely important to limit its growth. There are many ways to avoid or limit debt especially common sources such as a mortgage, consumer credit, or a student loan.

Student Loan Debt

Student loan debt affects millions of young Americans; in fact, it surpasses consumer credit as one of the largest sources of debt in America. While student loans make it possible to acquire a prestigious and expensive education, they often create perpetual burdens for new young workers down the road. Luckily, there are ways to tackle student loans faster or avoid them entirely.

In order to avoid a student loan, one must turn to a scholarship or grant, better known as “free money.” Scholarships and grants are awarded by a number of institutions ranging from universities, non-profit organizations, or even the federal government. They do not have to be paid back, so debt does not enter the equation. Some lucky students cover the entire expense of college through scholarships. The best bet is to start searching for opportunities for this debt-free funding as soon as possible.

Despite there being scholarships and grants, most people still have to deal with student loans after college. Luckily, there are a couple of tricks to help save money as well as cut away debt efficiently.

Student loan refinancing is a popular choice for graduates who are dealing with multiple loans and interest rates. Many borrowers can get their loans lumped together with one interest rate through a private company. This leads to money saved on interest over the life of a loan. Refinancing aside, there are a couple of ways to get rid of student debt faster than usual. The first involves paying interest often and early, and the second involves making larger than minimum principal payments. Similar to refinancing, these two practices help limit the building of interest each month. The end result is simply less debt to pay over time.

Consumer Credit Debt

Consumer credit debt is a burden whose reach stretches across generations affecting a significant number of Americans. With that being said, the main source of consumer credit debt is simply credit card malpractice from a lack of literacy. The first piece of advice would be to take a credit card class before applying for a card, but since so many card holders have debt already, this is not as relevant anymore.

The best way to avoid debt is to pay off each balance in full every billing period. When balances carry over billing periods, they accrue interest which just means more debt. Interest rates are a big culprit when it comes to consumer credit, and many card holders let balances carry over. This is a terrible practice if done unnecessarily, so it is best avoided at all costs.

Building on interest rate awareness, it is absolutely important to understand the scope of a credit card’s interest rates. They are applied for balances that carry over, balance transfers between accounts, and cash advances. These transactions build debt on top of the initial credit; in reality, it is best to avoid them wholesale. Aside from avoidance, simply knowing their impact can go a long way with debt responsibility and accountability.

A good way to avoid consumer credit debt is to simply avoid using a credit card for frivolous spending. It can be easy to spend on credit, to forget about the debt, and to spend additional money from a checking account on something else. It is easy to say this can be paid for later, but it is not easy to remember that commitment 24/7. Frivolous spending is best done with a checking account from the start in order to limit overall debt.

Mortgage Debt

The leading source of debt in the United States stems from home mortgages. While getting a house and a mortgage loan is a positive thing (and a lifelong dream for many), it comes with its own hardships and challenges.

After paying a mortgage for some time, the benefits of some mortgage terms tend to devalue, and interest rates lose their original competitiveness. A changing market can lead to an old mortgage causing more harm than good; in other words, some mortgage terms age differently than the salary they were originally paired with. This leads to mounting debt if not properly dealt with.

Refinancing a mortgage works similarly to student loan refinancing. It involves taking on a new loan with an updated interest rate in place of the old mortgage terms. Many private companies offer mortgage refinancing. These companies essentially cover the previous mortgage and offer the new loan to the borrower. The end result is money saved on interest over the life of a mortgage which leads to less debt overall.

Mortgage refinancing aside, the best way to avoid mortgage debt is to avoid biting off more than you can chew. In other words, do not buy a house outside of your price range. A huge mansion with a pool does not pair well with $50,000 a year; in fact, there are much more livable and debt-free options.

Andrew is a content manager and part-time freelance writer who focuses on personal finance, student loans, and current events. After graduating from college, he decided to start writing about student loans, other financial aid, and higher education in general. It is his goal to help create a debt-free trend for everyone.