Budget
Formulating a realistic budget is the most important step. One should enlist all of his or her sources of income and expenses. Carefully examine even the minutest detail so that nothing is skipped. Income may include the job pay, part time jobs, gifts, etc. While making a list of the expenses do not ignore the lesser prominent ones like say a haircut as they all add up and have to be paid for. The budget should make provisions to allocate some money each month to eliminate the debt. The prime reason for planning and setting up a budget is to control the finances. Proper budgeting will ensure that the spending is effectively managed and does not go overboard. Sticking to the budget planned will ensure that the debt is paid off and will drastically reduce your stress. It gets very tough to decide if your finances are on track in the absence of a budget.

Shop Around
Many people are just not willing to properly research the field before taking a loan. Nowadays there are so many short term or easy installment loan packages available. Just spending some time to inquire by making a few calls or browsing on the internet can help you to save a lot. Also people underestimate the power of negotiating. Sitting across the table with the creditor and explaining to him your financial condition can put things into perspective on both sides and help you to get the optimum out of the deal.

Energy Saving
Today, we hear a lot about conserving energy to save the environment and prevent global warming. But its time we realized that doing so also results in a massive financial advantage to us. Switching off the lights and other appliances when not in use, conserving and using water sparingly, using non extinguishable fuels like solar power for heating, etc ultimately help us in saving a lot of money which can be directed towards paying off the debts. If additional money is saved after paying your monthly expenses, debt installments, etc you can begin investing this surplus. This will result in your wealth expanding.

Thus, proper money management helps reduce stress and ensures a better standard of living.