As long as you stay in control of your debts, it will not become a problem. But if debt starts to control you instead of the other way round, you need to take action quickly.

Below are some practical tips to manage your debt, keep it under control and save for a rainy day.

Plan and stick to a budget

Take the time to create a budget. Use the budgeting calculator so you can see what you earn and where you spend it on. Try to eliminate any wasteful expenses or items you can live without. You will be surprised how even the little things will add up every month, which could translate into hundreds or thousands of dollars a year. The money you save can then be used to pay down your debts with the highest interest or as a deposit for a home

Think long-term

If you're lucky enough to get a windfall, don't go on a spending spree. Put it towards something constructive, such as paying off a personal loan, paying down your debts with the highest interest or making a one-off payment on your home loan.

Refinance your home loan: Get the best loan for you

When was the last time you spoke to your mortgage broker about a home loan finance health check? Do you know if you are still on the best home loan interest rate? Speak to your mortgage broker about restructuring refinancing your home loan to a deal that best suits your needs and circumstances. You could end up saving thousands in repayments just by refinancing to another home loan.

Start small: Cutting down on take-away and coffees

Taking a packed lunch to work a couple of times a week or foregoing your weekly takeaway dinner can all help to ease financial pressure. For example, if you normally spent $10 a day for 5 days a week on lunch, you could potentially save about $2,600 a year if you bought lunch from home instead. The money you save can be used to pay down your credit cards, personal loans or as a deposit for a house.

Don't borrow too much

If you haven't yet entered the property market, wait until you have saved a sufficient deposit before buying a house. That means you will have to borrow less. In the long run, this will save you a fortune in interest and you won't have to pay for Lenders Mortgage Insurance. Try not to put yourself under too much pressure with a mortgage loan that you can't really afford to repay. Make sure you can make the loan repayments even in the event of interest rate rises.

Pay cash and avoid credit

Try to get into the habit of paying for things in cash rather than credit. You will not only stop your debt from growing, but you can save money in interest and fees. Keep an eye out for sales so you avoid splashing money out on items you don't really need or want. If you have to have it, lay-by is a smart way to buy goods if you can't afford them straight away, because, unlike credit, you don't have to pay interest.

Consolidate debt

If you have several mortgage loans (personal loans, credit card debts, car loans), you could arrange to combine all your debts into one loan using a debt consolidation loan. You can save money doing this if the interest and fees on the debt consolidation loan is less than the interest and fees on your multiple loans.

Seek professional financial advice

If you're not sure whether your debt is structured correctly, need some tips on managing your debt or need help to set up a budget, make an obligation free appointment with a professional financial planner at Intellichoice by calling 1300 55 10 45.

Please consult an independent financial counselling service if you need help managing your debt. These services are available in every state and territory and provide a free, independent and confidential service. They will be able to help you manage a short-term crisis and plan to prevent a future one. Take control of your financial affairs now.

Alternatively, you can also speak to one of our experienced financial planners at Intellichoice by calling 1300 55 10 45 and they will be able to help you with a plan to consolidate debt and put a budget in place so that you are in control of your finances.