You've Conquered Debt...Understand How To Prevent A Debt Backslide

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A good feeling of relief comes after you've gotten rid of every single debt you owe. Be happy that you've accomplished this, but beware. Some people who've just recovered from their debt are quick to slide back into debt. And if you're one who tends to get into debt trouble, chances are you may have the same temptations to spend, and the same impulses to pull out your credit cards without thinking about tomorrow. You see, personal finance budgeting is all based on discipline.

For those who do slide back, self-destructive habits kick back in so they can support their old lifestyles. Often these people are aware of a sense of disconnect between their personal finance and the world they would like themselves to believe they should have. Existing in a kind of fantasy world, they keep on spending what comes their way without realizing how much more a discomfort it is to be buried in debt than to not possess expensive stuff.

Accumulating lots of debt is a problem a lot of Americans face. Owing over $800 billion in revolving debts (excluding car loans and mortgages), most of them are lower and middle class family members. The spectrum includes people who truly need the borrowed money (the disease-stricken mother whose credit cards cushion her medical bills; the breadwinner father trying to find a job) and those who just spend more than what they earn.

Priorities mean priorities. When you make out a personal budget spreadsheet, it has to be based on a plan you can stay with, and will adhere to, even though your desires pull at you to abandon the plan. The act of setting aside money for specific bills is no different from the act of carrying out the payment of those bills, and not spending the money for other things... like luxury items.

Be cognizant of your purchasing impulses. Only you can really get to know and accept your behavior, and how you manage your desire. Being a tightwad and dollar burner are two ends of the spectrum of money-related behavior. It is all in the mind. When you know certain purchasing trends have an effect on you, avoid them. There's bound to be something that will keep you busy enough to be distracted from impulse buying. Try other hobbies. Stay away from shopping malls. Put down that magazine when you see enticing sales and ad promos. If you cannot absolutely remove yourself from enticements, you have to decide to trim down the cost.

Attempt to enroll in automated payments for your regular bills, so you don't see extra unused money and be enticed to spend it. The good thing here is that since a portion of your income is already deducted and channeled into needed payments, you won't have to decide on where to spend that money. This default spending decision is actually what keeps you from thinking about overspending, or misspending.

Divide your personal budget spreadsheet into categories -- cable, gas, etc. That way you can see just how much you spend for every category and how much gets left over after you pay them all off. Just seeing this gives you some amount of control.

Who else will worry about your future? At what point do you intend to retire, and then, what will you do? Have you figured out your kids' educational budget? You have to stockpile money while you can; that way, similar to a squirrel during winter, you'd have no concerns about money.

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