Some debt is good debt such as a mortgage or student loan. Below are a few things to know to save you from the pit of massive debt.

1. Pay back your loans. Make sure you don’t borrow more than you can afford to pay back. Whether it is a student or mortgage loan and credit cards. Shop for the best rates.

2. Handle your spending. Avoid using your credit card to pay for items you want or need so quickly without knowing if you can afford to pay off the monthly bill in full.

3. Spend less, save more. In other words, spend on items you need than on items you want. Writing a list of these items will help you put your spending habits in check.

4. Save.Save.Save. Have a safety nest of cash worth three to six months of living expenses in case of an emergency.

5. Pay off your highest – rate debts first. Pay off the balances of loans or credit cards that charge the most interest. Continue to pay at least the minimum on all your other debt.

We suggest speaking with a reputable debt counseling agency that is able to help you in managing your finances and to consolidate your debt.