Managing debt should be a class they teach in high school. It is a life skill that everyone needs to understand and master as they navigate through adulthood.
Every commercial loan requires that you have enough income to support the repayment of the money you are borrowing. The first day you receive money on credit, you should have an organized system for how you will pay it back. My mother had a secret drawer in her desk that she always put $5, $10 and $20 bills. This is a nice way to save extra cash for a rainy day, but it is not an organized system for repaying debt. Managing debt is best done through savings accounts at your bank, credit union, or online money accounts.
One easy system to manage debt is to make an appointment with yourself around every pay day. If your employment check is automatically deposited to your checking account, set up a free electronic account dedicated only to repaying loans. From the comfort of your home, you can transfer the same amount every two weeks into the Loans Account. Then you can set up electronic payments to go from that account to your creditor automatically every month. You will avoid late fees and extra interest charges and keep your credit history in good standing.
Whether you choose to do your banking electronically or in person, the key to easy debt management is the regularity and the separation of accounts. Putting $100 into a Loan Account, for example, may not feel good in the moment that the money is leaving your checking account, but there is no question it will feel great when the day comes to make your loan payment. Whether you have a little bit of money or a lot, managing debt has to be a structured plan initiated by you, the borrower.