Managing debt and taking care of expenses is also essential to avoid financial excesses. It is a skill to be developed. With the guidelines and tips below, managing debt and avoiding excesses may be simpler than you think. Follow our Complete Guide to Debt Management!

Evaluate finances

Start your control and management by understanding, evaluating and analyzing how your life and financial situation is currently. For example, make a note of all your expenses (consumer expenses, outstanding bills, interest, fees, and everything else you have to pay).

It is also important to calculate and take note of how much you earn, that is, your income; plus savings (if you have saved resources). Thus, you will have the exact situation of how your finances are.


Make a budget now!

Create and develop a budget so that you can align your income with your debts. It’s what will allow you to control and manage your debts and avoid excesses, as you’ll know better how much you should have to pay off debts and how much you can spend, in addition to what you can save.

It’s not complicated. A simple way is to list sources of income and fixed expenses and variable expenses.

Always give priority to paying off debts

With the budget, you can also find out what your fixed and urgent debts are. In addition, any pending financial issues that have interest and fees. These expenses must be paid with priority.


Then you calculate how much you should pay for variable expenses, what you can spend and how much money you can save. This habit makes it possible to manage debts and avoid financial excesses.

Negotiate the interest If you have debts that are

Overdue or expenses such as credit card and loan, it is worth contacting the companies and negotiating. Interest rates are usually high and people can lose financial control and mismanage debts, thus committing excesses.

If you have a good relationship and a good financial history, institutions and banks usually offer good conditions. It’s better to reduce than spend cards and end up hurting yourself, as interest is increasingly high and expensive.

Have a single debt

Also in the complete guide on how to manage debt and avoid excesses, if you have a lot of open expenses, consider turning them into one. For example, if you have more than one loan, check with banks and financial institutions to combine all debts into one.

That way, you organize yourself better and have more chances to control your finances. Also, avoid forgetting to pay outstanding bills.

Increase yields

In addition to the guidelines, if possible look for opportunities to supplement your income. Sporadic jobs are a way to have extra money (as long as you don’t spend it on things you don’t need).

If you get extra income and can save that money, it’s an excellent idea to avoid excesses and have a financial reverse for emergencies!

Monitor your financial life frequently

It is essential that all planning is monitored periodically. This way, you can find out if the strategies for managing debt and avoiding excesses are being applied correctly.

This monitoring also allows for corrections and changes, in case you get confused with the finances or identify that the budget is not going as expected.

Use cash or debit card for payments

Avoid purchases on a credit card or with credit limits. These features incur interest and penalties, in addition to giving the false impression that you have money that you don’t actually have.

Unfortunately, it is very common for people to have debts and disorganize their finances by using credit frequently and without being necessary.

Prioritize debts to pay

In our complete guide to managing debt and avoiding financial excesses, there are two good strategies to pay for what matters most and help you get organized:

  • Pay off smaller debts while paying off bigger ones. That way, you pay off the minor debts in full and are free of them.
  • Start by paying off the smallest debt while making minimum payments on other debts. This method also has a psychological effect, as it motivates you to eliminate debts. Another strategy is to assess which ones have the highest interest rates and prioritize them. Thus, you avoid paying a lot of finance fees. Then, you go to the pendencies with lower interest rates. It is a good method to avoid the burden on debts.

Finally, always remember financial discipline and use your money responsibly. In addition, if there are many debts, persistence and patience are needed until your financial situation is really good. Follow the guidelines and the complete guide to manage debt and avoid excesses, as the tips are based on expert methods.

By following and applying, you will certainly give a new path to your finances. You might even be able to save some money over time and make a wish or a dream come true!

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