More and more of us are reliant on credit to supplement our income however, relying on credit does lead to stress and a debt problem which can be hard to deal with. When things get tough financially there are two things we want the tough times to go away and the tough times to never return. There is an unlimited amount of information available about becoming financially secure, out of debt, well-diversified, and on the way to an enjoyable retirement; which begs the question “why are so many people struggling financially”?

Its easy to use a credit card to pay bills only to later realise that you have overspent. This is a major concern for many people today, so if you find yourself getting deeper and deeper into debt a simple option is to switch to a debit card. A debit card serves as a natural means to curb any excessive spending to prevent you from going further into debt. Many people are not struggling to pay their bills because they earn very little but because they spend too much relative to what they earn.

Your mortgage is often the cheapest source of debt you have but it could still make sense to overpay on your monthly payments. First and foremost, all of the higher interest debt that can be settled should be done so first, before considering this option. Basically, any money that is considered for overpayment should be money that would otherwise go into a savings or an investment account, meaning that all other budget categories are fully funded for the time being.