As the world becomes smaller and smaller, getting access to information and products becomes less difficult. In becoming a more globalised economy, we have become a consumer-driven society that places great emphasis on excess. Not to say there is anything wrong with money because everyone likes to make it, spend it, and if we are particularly savvy, we love to save it.
debt stress
However, as a result, for many people, debt has become a way of life, and this is equally true for Australians. To combat spiraling debt, consumers have a number of avenues including seeking the assistance of debt consolidation loan providers. While these providers can solve the immediate problem of reining in out-of-control debt, to really remedy looming debt consumers have to look at their attitudes about money and debt.
Keep reading to learn how you can prevent your debt from spiraling out of control and stay in control of your financial future.
Review Your Finances
Reining in your debts begins with looking at your current financial situation. In your review, make sure to include all expenses and debts including rent or mortgage payments. With a calculator in hand, add the numbers up and compare this total to your earnings. If you find that the sum is close to or above your earnings, then at this point, yes, you are headed for financial trouble.
Cut The Fat
Trimming the fat from your budget means eliminating or reducing the amount of money that leaves your purse monthly. Common budget traps include cable, phone and utility services that have extra fees, excessively expensive entertainment, little traps at the grocery store, and dining out too many times a week. Also, look at your outstanding debts to see how much interest is being paid out each month.
After finding the source of lost savings, take on an aggressive approach to trimming down your budget. For one, focus on debt that cripples your finances. While debt is never a great thing, discerning the difference between good debt (education loans, mortgage payments, business loans) and bad debt (credit card debt) is very important. You want to eliminate bad debt because there is no return on investment (ROI) with a credit card and other consumer debts. In fact, consumers lose a lot of money in interest to credit card payments every month.
Pay off existing balances by reducing how much you spend on entertainment, groceries and luxuries and use that money to pay off existing credit card balances and other loans. Another approach is to double up on payments on one debt, eliminate it, and when the debt is paid off, then focus on other debts. Furthermore, consider options that will allow you to combine existing balances into one loan, options including loan consolidation, home equity loans, and balance transfers. Moreover, do not take on any additional new debt.
Take Inventory Of Money Attitudes
Probably the best way to prevent debt from spiraling out of control is to do a mental check of the attitudes that created the situation. Then, decide for yourself when it is, and is not, appropriate to obtain credit. The whole point of taking inventory of your finances is to avoid falling into the same financial traps again in the future.
As stated previously, good credit can pay off in the long run, many years after the debt has been paid. Good debt such as home, education, and business loans give you a credit history but do yield a return. Any debt that does nothing but satisfy your need to seek retail therapy should be avoided at all costs.
Finding Your Financial Paradise
There is no one set standard or rule for finding financial peace and prosperity.  However, by taking inventory of your financial life and attitudes, you can prevent finding yourself in overwhelming debt, the kind of debt that debilitates in the long-run. Ultimately, at the intersection between financial stability and management and personal sacrifice and responsibility, you will find your oasis.

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