Money : Five Steps to Manage Your Debt
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5 Steps to Manage Your Debt

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If you feel like it's getting more and more difficult to pay off your bills every month, it may be time to reevaluate your finances. Your credit rating can affect everything from job prospects to your ability to buy a home, so it's never too soon to take control of your debt.

To better manage your debt, consider these five steps:

1. Track your spending. Record every penny you spend in a daily journal for a month or two. We admit that's not the most exciting activity, but trust us, you will be amazed at the results. Jot down coffee and sodas on the run, daily breakfast, lunch and snacks, grocery store runs, and other places you spend but don't ordinarily keep track of or budget for. Most households can typically find at least 15% that can be cut from their spending without pain.

TIP: Use a small notebook or a piece of paper in your wallet and log ALL daily expenditures everyday.