Bill consolidation and other tips for managing debt

Prices are going up. Being a struggling doctor in a third world country really does not earn us enough for us to pay for our food, clothing and shelter. We are lucky that we still have mothers who we live with and who still give us interest free, pay when we can loans, enabling us to remain practically debt free, except for our debts to them, of course.

Not everybody is as lucky as we are for having such a great support system. And although it's easy to blame indiscriminate and uncontrollable credit card spending for a big chunk of debts, but to generalize something like that is sometimes just a little bit unfair. From personal experience it only takes some unexpected event like an illness in the family that makes the family's finances fall into disarray. Bills keep piling up and before you know it you're struggling to keep up with payments. In such cases it may wise to look into bill consolidation as a way to keep everything in check. These companies may also help in giving you free advise through their credit counselors.

But one key to becoming debt free is to avoid unnecessary spending and saving for the rainy days. Prioritize, prioritize, prioritize. Designer bags and shoes can wait, but the electricity and water bills cannot. Education is always worth spending for, but education that is too high end and obviously beyond your means is foolish. Know the difference between your wants and your needs. Spend for your needs. As for your wants, if it's only a momentary desire, it will soon pass. If it's something you really, really want, you have to save up for it. Don't sacrifice your needs for your wants.

Some more strategies for increasing your savings and avoiding debt are living below your means and paying yourself first. These may sound like high faluting terms but they actually work.