Debts can become part of our financial life, especially if we are in a stage of change or do not know how to manage well our finances, but if these debts get out of control then this is when it becomes a problem.

Some people insist on ignoring the problem thinking that there is no solution. However, putting the problem aside only makes things worse, because you are creating a negative credit history that affects your long-term finances, as well as your personal and family future. You never know if you will need to ask for a loan someday so if you have a black mark on your credit history then getting a loan will be almost impossible.

To prevent this from happening, here are some basic steps to take control of your finances:

Know what you owe: Unfortunately many people do not know their total debt and this causes them to lose control over their finances. To avoid this, take the statements and all the credits you manage, attach them and keep track of who the lender is, the amount of debts, the loan term, the charges, fees and interest rates.

Establish debt paying timeline: Reflect on setting realistic goals to end your debts. Set a goal to contribute month after month a specific amount to pay off your debts and make a commitment with yourself to reach your financial goals and get rid of all debts in the specific period of time you established.

Have everything on a single card: Some banks allow you to concentrate all of your debts on a single card with a lower interest rate. Check the different options you have and choose the one that best suits your budget.

Cut your expenses: Try to make a change in your financial habits. Try not to add more charges to your debt by buying things you do not need. Remember that if you keep spending it will be harder for you to achieve your financial goals.

Increase your income: Think of ways to increase your income, you could get a part-time job on weekends or start a small business with one of your friends. Get creative! By earning more money, it will be easier for you to end with all of your debts.