If you are considering locking yourself into annuity rates or getting a new credit card, the first thing you will need to do is determine a rate of repayment that is affordable for you. In order to work this out, it's a good idea to draw up a budget.
Remember that in order to be in control of your finances, you need to know how much money you spend every month, how much you earn and how your money is apportioned between your expenses. To begin working out your budget, write down your monthly income.
Next, divide your expenses into columns. Create headings like household, car, insurance and entertainment. Using the previous month as a blueprint, decide how much money you spend on each section and write it down in the appropriate place.
This should give you a clear understanding of where your money is going. If you find that you've spent a third of your income on a luxury like dining out, for example, you can rectify the situation by deciding how much money should be spent in restaurants and creating a mini-budget accordingly. The money you save here can then be put towards other, more important things like the repayment of debts or credit cards.
In short, before you take on a debt, or commit to making monthly payments, you first need to determine the state of your finances. This will involve drawing up a thorough budget and making changes where they need to be made.