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It's important to understand the true cost of doing nothing about managing your finances because it can mean the difference between sleeping soundly at night or not.

For example, if you do nothing about reducing your outstanding credit card and other personal debts it's a matter of “when” not “if” you'll end up hitting a financial brick wall. So whenever possible let’s save for the things we want and use our credit cards responsibly. Never ever make minimum credit loan payments - always try to pay more than the minimum monthly payment.

When things get tough financially there are two things you want - you want the tough times to go away and you want the tough times to never return. So please remember these simple tips:

• It should be a priority to pay off credit card debt as soon as possible. 
• Make sure you know what interest rate you are paying on your credit card debt.
• If it's going to take you more than two months to pay off your credit card debt it's worth looking into transferring your loan amount to another provider that offers a lower interest rate or nil for a honeymoon period.
• If your credit card and other personal debts are becoming unmanageable consider contacting a lender such as State Custodians about a consolidation loan. This will allow you to pay them off at affordable home loan rates.
• Keep track of your spending and make the decision to maintain a simple budget. This is a proven way of taking control of your finances (and as a result, your life). Putting off the decision will only extend the pain and stress that debt brings.

We all know that a healthy cash-flow is king and being able to pay your bills helps you to sleep soundly at night. So, take control of your finances by budgeting and if required by consolidating your debts as soon as possible.