Learn how to manage debt!

Debt is the subject of talk shows, news, and even jokes. The reality show "until debt let us break up" has even become a hot topic. However, debt is the cause of many marriage breakdowns, unemployment and suicide.

Although many religious leaders have warned for centuries that being in debt is not necessarily evil. In fact, there may be things like "good" or "creative" debt, such as borrowing money from your home, then investing wisely and thoughtfully, while "deregistering" interest on borrowings for income taxes. We will discuss this strategy later.

Still, getting into debt is not a good thing. Many people are eventually trapped in a "bad" debt cycle, borrowing money to buy things that only cut prices or depreciate, such as cars or big screen TVs. I personally are shocked by the huge debt of college students, and often thank credit card companies for issuing credit cards like candy.

Let's face it. Most children who leave school at the age of 18 or 19 let their parents wash their clothes, buy and pay for their groceries - not to mention their bed. In the past two decades, they have never been taught how to budget or even pay bills for fast accumulating debt. Most of these young people should not use credit cards from the start, but once they do, they quickly find themselves crossing 12%, 18% or even 26% of the monthly bills for interest and expenses.

Ask yourself these questions?

• Did you find that you are constantly concerned about your financial situation?
• Are you always late?
• Have you started accepting creditors' calls for "unpaid bills"?
• Do you use your credit card "maximally" and pay a large amount each month, only paying the "minimum amount payable?"
• Is your net income growing, covering only the interest on debt you owe, or even touching the growing principal?

This is a simple strategy that you can achieve to get rid of debt:

Set up a budget and track all revenue and expenses

There is usually one person in the relationship who handles the money and pays the bill. When I ask them if they follow the budget, the answer is usually "no"; however, they feel they know where the money is spent. As far as my personal budget is concerned, I am very specific. I review and allocate each fee to know where my money comes from and how to spend it.

This process is relatively simple. I only took one envelope from my bill and wrote the month. Anything I buy will be recorded on the month table and the receipt will be placed in the envelope for that month.

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