When things go well financially then it is a wise and good idea to clear your debt. That is the right thing to do, but as humans we tend to do the total opposite. We spend more and make more debt ... human nature.

It is natural to think that things will be better in the future e.g. job promotion, better job, second job, finish school etc. With this mindset you might go on binge spending or get yourself deeper in debt. There are a percentage of people that will use and invest this extra money wisely.

So if you get more money or additional income then don't think you can live larger, because tomorrow will take care of today spending. Rather be safe and live within your means, because the last thing you want is to not be in a position to make payments on loans and credit cards.

When you should feel a financial squeeze of all of your debt then you might look for an easy way out. More loans, credit cards and debt, but there is no quick fix to your financial problems.

Don't buy stuff that you don't need or live beyound your means. Don't swipe your credit card unnecessary, because when your credit card is maxed then you want a quick fix to clear your debt so that the cycle can repeat itself.

Lots of people I know and even myself thought that tomorrow will take care of itself and lived on the edge from paycheck to paycheck (hand to mouth) and 70% of income go to debt repayments. I learned the hard way that a lots of unexpected things can pop up out of the blue, when I least expected it. Car breakdown, television break, high telephone bill etc.

So I was in the red. Basically I didn't have any money for traveling expenses or fuel for the car etc. so I had to borrow money and as a result go even deeper in debt.

I learned that whatever extra money I get in I rather put it on my debt to clear it as soon as possible so that interest can drop and also so that I can become debt free. Slowly but surely things started to get better and I'm on track to be 100% debt free.

Make wise financial choices when times are good :)