Standard and Poor’s decision to downgrade its rating on the United States caused a financial panic that created negative outlooks on the future of the economy and negative returns on the stock market. The problem might seem complicated, but it all boils down to a single word — debt.

Too much debt creates terrible problems for even the largest economies and countries. The most powerful and prosperous nation in the history of the world ran into trouble because of a heavy debt load. Even though the nation might not need a no fax payday advance yet, its spending has come under scrutiny. If the credit of the United States can come into question, then what does it say about the ability of debt to wreack havoc on the finances of the average consumer?

The unfortunate reality is that debt has become a fact of the life in the United States. Buying a house, an education and a car usually means taking out a loan. Even if getting into debt is an issue, it does not mean staying in debt. Here are some helpful tips to prevent normal financial transactions from becoming a back breaking burden.

Sweat the Small Stuff

If you can pay off a debt in full, take care of it. Rather than continue to pay finance charges on a smaller loan, pay it off and then focus on the major burdens.

Don’t go Overboard

Are you trying to live in a castle or a home? Sailing the ocean might be a passion, but do you need your own yacht? Make reasonable financial purchases on the big items. Otherwise you may spend the rest of your life making payments.