The content is accurate at the time of publication and is subject to change.

We can easily find reasons why we have bad credits. For example, when our car breaks down, the bill may be worth more than what you originally paid for the car. In other cases, we are faced to cover for unplanned home renovations. These things will force us to apply for loans which typically have higher interest.

Even though we have these circumstances, we can always find ways to prepare ourselves to settle our liabilities without needing to use the credit card (which can actually lead you to pay higher bills because of the interest rates). Some of these methods are really simple and will no longer need high-tech tools. Here are some tips:

1. Don't spend more money than you make, save something, get your debt paid off, alleviate your risks and have some balance in your life. Figure out all your resources, your income. Make a forecast of what you`ll likely spend. Do budgets then do a comparison of what your costs are and your income is. Then try to figure out how you can save.

2. The environmental principle of reduce and re-use is also applicable in reducing our credits. Reduce unnecessary expenses, such too many trips outside the country. Save on vacation travels when you spend your vacation at home with your family. Re-use items that are still functional and is good for use instead of buying new ones that will soon be stored and neglected again. Recycle. Instead of buying compost for your garden, make your own. If you live in the city, having a small pot with herbs in your own home is a good idea so you can always have the fresh seasoning for your cooking. Herbs also add a fresh garden look to your home.

3. Be your own handy man. If the task is simple and would require a little fixing without the help of expert, then just learn to do it yourself. You can also learn more in the technical and mechanical aspects of your own home. Always check on your car`s oil consumption and have a regular maintenance check. It is also a good idea to clean your own car. A well conditioned car saves you costly repairs and service charges.

4. Take advantage of nature`s natural lighting system. Open the curtains of your windows and let the sunshine in, it saves you a lot of energy cost and gives you fresh sunlight beaming down your own home.

5. If you`re living on the countryside, try investing on earth friendly geothermal heating system. It`s a new technology where the soil`s heat can be used to heat up your home. Geothermal heat systems work by transferring heat between the constant temperature of the earth and a home. Investing on alternative heating and cooling system maybe costly at the beginning but in the long run allows you to save more than regular purchases and replacements.

It is always important that you exercise discipline in managing your resources and pay your credits on time and set goals. Some ways are really practical, you have to be creative and change your lifestyle.