If you have a debt, it is extremely essential to understand on how you can effectively manage your finances. Here’s some of my tips:

  1. The first step for avoiding excessive debt is to maintain your budget. The simple act of monitoring your expenses will help you identify areas where you can cut costs, which in turn will help prevent unnecessary debts.
  2. Make regular, timely payments.
  3. Always read your monthly statements promptly to make sure your creditors are getting paid according to your plan.
  4. If you will be unable to make a scheduled payment, contact the organization responsible for your account to make necessary arrangements.
  5. Avoid consumer debt as much as possible. Use debit and charge charges rather than credit cards. American Express, which you have to pay off every month, is better–and easier to manage–than a Visa or MasterCard.
  6. Take full advantage of credit card checks that allow you to borrow money instantly for business or investment purposes. Do not use them for consumer goods or vacations.
  7. Be reasonable in buying real estate. Put up a sizeable down payment (preferably 20% or more). Buy real estate that is easy to sell.
  8. When you do have to make purchases, shop wisely. Remember, used goods are far cheaper than new goods. This is particularly true of cars. When it comes time to purchase a new vehicle, shop for a used one rather than a new one.
  9. Create a Debt Management Plans . If you can’t afford to pay cash, don’t buy it unless it is a necessity.
  10. Tracking your expenses gives you the information you need to decide how to change your spending.