Loan is vicious. Once caught in its trap it becomes difficult or impossible to break free. The high rate of interest strip off more than what you need to pay. Sometime it leads to unpleasant situation such as bankruptcy. It's always better to avoid such situation from the beginning rather than trying to recover.

People with low finance or debt burden should resort to careful planning and frugal living. Even those with comfortable lifestyle need to plan out and allocate resources properly. Cost-cutting in the possible areas always spare more disposable income for prudent spending or saving for emergency.

The following suggestions will ease out some of your financial discomforts.

Credit card usage: Credit card usage should be minimized and avoided unless there is a pressing need for it. Instead of paying a small interest every month bigger amount should be contributed towards repayment of credit card bill. Month end purchase if not inevitable should be held back till the next pay check instead of using credit card.

Monthly budget: Instead of exhausting your paycheck in the first week itself, prepare a budget before the pay day so that the salary can be judiciously spend all over the month. Month end deficiencies can be avoided with prior planning. Bills and interest payment should be come first in the list of priorities where as trivialities could be handled later.

Saving: A good percentage of your income should go to saving so that fund shortage and emergencies could be met without taking loan. Besides good saving can help you earn depending on the interest rate. Moreover it will release some of your tax burden, leaving you with more disposable income.

Interest rate advantage: keeping tab on the interest rate can help you take advantage of low interest loans to pay off the high interest loan.

Shopping judiciously: It's always advisable to compare the prices of product before making a purchase so that you can strike the best deal. Brands can be forgone for non-branded products with same quality yet lower price.

Pre-owned purchase and sale: Pre-owned things like cars and furniture in good condition are better substitute for first hand high priced products. Similarly things which are not of much used could be disposed facilitating extra fund for other purposes.

Public transport and car pooling: Public transport and car pooling are best way to save money from the rising fuel prices. Electric cars and low cost public transport could be used for daily commuting. Walking down to short distance places instead of using vehicle can relieve some of the transportation expenses.

Curbing habits: Curbing habits such as smoking, excessive drinking, binging, silly shopping can be curbed to bring about some relief to your pocket.

Debts could be easily avoided or recovered with judicious spending. Extravaganza should completely ruled out or saved for occasions. In case of unavoidable situation short term loans or small amount loans are recommended rather than long term debts which can continue for years.