Recession has been for many a very loud wake-up call. It's at such times that most people realize how dangerous it is to fail to observe any discipline in their financial matters. What starts as fun ends up in a complete mess, one that often takes years of concerted efforts to clear.

Do not wait for a disaster to show you the importance of financial management. Start now and you will be happy you did. Here are five steps that should keep you out of trouble:

1. Credit cards – first of all you need to realize that you can very well live without credit cards. A debit card will be just as good. However, let us say that you must absolutely have one or two – ensure that you do not use more than 35 percent of their credit limit.

Use the credit card only when you are one-hundred-percent sure that you can repay the whole amount when the bill comes due. In this way you are using the credit to your advantage. While your (saved) money will be earning high returns, you are using the credit card money for free – as long as you pay it in full when the bill arrives. This gives you usually 45 days of credit.

2. Always look out for less interest – bargain hard when you take out a loan. Strive to get the lowest interest rate possible. This applies to credit cards as well!

Even though you should always pay your credit bills in full when presented, you should still look for the lowest interest rates and annual fees. Transfer all the high interest loans to lower interest loans wherever possible. You will save a small fortune by doing so.

3. Save – an effortless way to get the lowest interest rates is to build up your savings. It is very important that you have money not only for emergencies that can strike anytime, but also to show you as a good investment to your prospective creditors. A large amount in savings shows that you are managing your finances well, besides the fact that you have a fall-back amount in case things take a turn for the worse.

4. Invest – use a good portion if not all of your savings for low-risk, long-term investments. It's easy to have your money multiply if you know how to invest and where. Don't worry; you need not study to become a whiz kid in financial matters. You can always trust your fortune with mutual funds and/or professionals who do this type of work for a small fee. Use only those who are highly reputed in the market.

5. Buy real estate – there is no better way to invest your money than buying real estate. Recession is a great time to buy since the prices will touch bottom, which will give you great profits when the market eventually rights itself. No matter what you buy in real estate, it's bound to give you 3-5 times returns on your capital within a short time of five to ten years.

Adopt these five simple principles and you will always be free of worry with regards to your finances.

You find yourself in a financial jam and your credit score is plummeting fast. What do you do? In all probability you will look for ways to repair your credit score in the fastest way possible.

A quick search on the Net will give you a huge database of resources with various methods to help you do it yourself. You will also get information about credit repair agencies for assistance in this task.

What should your choice be?

Self-help Vs Credit Repair Agency --

If you ask anyone who chooses self-help over credit repair agency services why they made this choice, the answer will be, "I was afraid I would be cheated." More than 96% of the people who avoid credit repair advisors do so because they fear that they will be courting more trouble than help.

Self-help with credit repair is entirely possible. Many people do it. However, be warned that this is a time-consuming job that requires sustained follow-up and continuous monitoring. The task is cumbersome and quite frustrating. This is why hired help is better.

That brings us back to the topic on how to ensure you are not cheated. It's surprising how many people fall prey to unscrupulous credit repair agencies. The overall picture looks like credit repair agencies in general are taking people for a ride and fleecing them of their earnings at the slightest excuse.

This is just not so. If you take a closer look at the profile of people who are cheated you will find a completely different picture.

You Are Asking For It

Is this shocking? Well, it's true. The profile of people who are cheated by credit repair agencies are often those who are desperate to climb out of their situation and need to improve their credit score quickly. At the same time it's common knowledge that the credit score is an amalgamation of your credit history.

The keyword here is "history." You cannot fast-forward history; neither can you interfere with it. You can just build on it, and that definitely takes time.

When you ask for quick-fix credit repair you are setting yourself up to be cheated. Credit repair can be done before 6 months are passed. This too, needs concerted efforts on your part as well as that of the credit repair agency.

When you are looking for miracles, which you know is not feasible, you are indirectly asking for trouble. Your desperation makes you an easy target for victimization, because you want to believe the unbelievable. Why should you be surprised then, when you are cheated?

Choose Wisely; Be Realistic

Settle only for reputable credit repair companies - those that are affiliated to national/ international level regulatory bodies such as the ECRA - and you will never fall prey to scams. Look for quality services and enjoy the privilege of being escorted out of financial trouble by professionals.

Try it. It's not as difficult as you think.