Money Matters! You & Your Debt

For every way that exists for us to make money, there seem at least three more ways for us to fall into debt.

For example, simply wanting to further our career prospects by attending college or university can put us into heaps of debt through student loans.

Debt, it seems, is everywhere. Sometimes we can't help falling into debt, but we can try to control our spending to curb our debts.

A good starting point is to sort out a Personal Capital review. Keeping track of your money can be tough if you're saving, managing it and investing it. Even if you have all your loans under control, it can still be a hard ask to track every little bit of debt or cash you have. Having a review before you begin your journey back into the realms of financial health can give you a solid platform to start from, as well as advice that can help you out.

The best way to control your debt is to simply spend less than you earn. The excess can be used to save (if you are not in debt) or to pay off your debts. Regardless of your pay packet or wages, if your expenditure outweighs your income you are going to run into issues, and these issues will be intensified if you are already in debt. A good budget can show you where you are going wrong with your spend in between paychecks; it will also help you identify areas where you can afford to cut down on your spend - boosting your excess.

Loaning money can be dangerous if you are uneducated on as to what the loan is asking of you. If used unwisely, loans and credit cards can be quite the trap to the unsuspecting user thanks to high and sometimes unforgiving interest rates. Payday loans should be avoided as while they can cover short-term emergencies they could seriously punish you if they are not paid off on time. If you don't meet the payment terms of your debt or loans, your credit rating will suffer, and you'll suffocate under the terms of the interest acting against you. This will not help your financial state whatsoever, so don't be tempted by easy fixes - they simply do not exist in the world of finance unless you win the lottery.

Keep a track of your transactions and accounts if you're a freelancer or business owner as you may very well be entitled to tax credits that could really help you out. Keeping hold of all your invoices is a good idea when the time comes to complete your taxes, as well.

Debt is natural in many circumstances, but the key is to manage it conservatively. Pay your debts off before increasing them and make sure you don't fall victim to an unforgiving loan. Be sensible with your money, or you might find yourself in a financial situation you can't recover from with any ease at all.