IF there is one constant in this ever-changing world of ours, it is over-indulgence. Too many desires and too little self-control.

So, these days everyone is on a diet and everyone is in debt. The reason for both is the same -- too much of a good thing can be bad. If the cause is the same, then maybe the cure is the same? Let's explore.

i. Make a List
Just like you would start a diet by making a list of all that you eat, start a debt less existence by first making a list of all that you owe. Just like good foods and bad foods, debt too can be either good (home loan, education loan) or bad (credit card or personal loans). Good debt involves lower interest rates, plus you get a tax benefit, not to mention the fact that it goes for a useful purpose. Bad debts on the other hand are expensive and more easily available, tempting you to spend beyond your means.

ii. Rank It
Now in a diet you'd classify the foods to be banned into a ranking order, starting with the worst, say French Fries. Similarly, ban debts which are too expensive by ranking them in order of interest. Start with the one that's the worst e.g. Personal loan which is a loan that needs lesser collateral/ security thus implies higher interest rates than a secured loan. A home loan (secured) may cost you 11% p a, while a credit card loan (unsecured) may cost you as much as 36% to 42% a year. Rank all your debts, starting with the most expensive.

iii. De-Tox
For a successful diet, you need to detoxify your system to begin a healthy life. In debt too, you will begin detoxifying by removing your bad debt to start a financially healthy life. Pay in the order of rank established above. Repay unsecured and high cost debts like credit card or personal loan outstandings first. Though the amounts may seem small, along with interest, they can accumulate to huge debts.

Illustrations: Vaibhav Shirke