One of the main reasons people get into debt is because they have no idea about the true state of their finances, how much they are spending, or what bills need to be paid at what time.

If something unexpected should happen (like your car breaks down or your house floods) and you haven’t got any extra cash stashed away, your finances simply won’t be able to cope and you’ll find yourself getting further into debt. These debt problems can escalate quickly too; as you take on more debt, with loans and credit cards, trying to pay off your initial creditors.

There’s no way to guarantee that debt problems won’t affect you in the future, but you can reduce the risk by taking control over your spending. The following tips should help:

• Get a clear picture of your finances. Sit down with a bank statement and try to understand how much you earn compared to how much you spend. Write down the dates and amounts of the bills you pay each month and keep a record of your spending using receipts and statements.
• Set a realistic budget and stick to it.
• Be strict with yourself on spending. Ask yourself ‚Äö√Ñ√∫do I really need this?‚Äö√Ñ√π before splurging. It usually helps to leave a few days before buying something on impulse, as you may find that you don‚Äö√Ñ√¥t really need it after all.
• Eat and be prepared before you go food shopping. Make a shopping list and have a snack before going out. The list will help you buy only what you need, and the snack will stop you buying on impulse because you‚Äö√Ñ√¥re hungry. Alternatively, you could shop online and avoid the temptations that supermarkets try to tempt us with.
• Have a no-spend weekend. Every now and again, stay in or take advantage of free local activities and see how much you can save.
• Open a savings account for all the money you‚Äö√Ñ√¥ve saved from changing your spending habits.