These days, living with debt seems to be as American as baseball and apple pie. We rely on credit to help pay for lots of important things like a reliable car, home improvements, education expenses, vacations, etc. We also pile up sizable credit card bills to pay for everyday living expenses such as groceries, gas, clothing, entertainment, etc. The truth is, living with debt is a way of life for many of us. But that's not necessarily a bad thing, as long as you have a plan for managing your debt.
First, make sure you're living within your means. You should never assume a debt load that you can't keep up with. Second, if you've got lots of different creditors and some of them are charging you high-interest rates, it might make sense to consolidate at least some of your debt at a more favorable rate. And finally, you should carefully consider how your family would manage the payments if something were to happen to you. If you were suddenly out of the picture, you wouldn't want to leave your family to drown in a sea of debt. You should have at least enough life insurance to pay off all your outstanding debt and provide a financial cushion to help your loved ones begin a new life without you.
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