Juggling your finances key to avoiding debt

28 February 2006

Being strict with yourself when it comes to dividing your income and cutting back when necessary is the best way to avoid getting into debt problems.

Industry experts say that juggling your finances can help you stay on top of money issues and ensure that you stay out of the red.

Debt is still a major problem in the UK with combined personal debt having topped the £1 trillion mark.

But a few simple measures can make balancing the books each month less of a challenge.

"It's important that you separate necessary and discretionary spending," explained Mark Maguire, spokesman for the credit card company Egg.

He added: "It is difficult to understand what you have to spend if you don’t keep an eye on it."

Splitting up your resources and tightening your belt when necessary can help avoid bad credit and other debt problems.

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