Know your enemy; the old war-time mantra goes.

In this case, the battlefield adversary is debt. And in order to defeat its creeping tendencies, it is imperative to have an intimate understanding of what is contributing directly and indirectly through added expenses in other areas.

The Problem

Most people who get into trouble with excessive debt don’t end up there due to some large expense or purchase. It’s more like the proverbial death by 1,000 cuts. In other words, it’s the small stuff that adds up and its killing every single day until the blood-letting is stopped.

The Solution

There are programs and applications available that can help bring debt under control through increased awareness. They give the consumer the proper tools needed to understand where debt is accumulating and how to reverse the trend.

Here are some of the best options available for maintaining proper debt management:

• Debt Reduction Snowball Calculator: This free Microsoft Excel spreadsheet program provides various debt reduction strategies including the practice of paying the lowest balance and highest interest first – the debt snowball effect. The program is designed to eliminate credit card, auto, student loan and other forms of debt. A calculator work sheet helps set a monthly payment and an accompanying payment schedule worksheet keeps track of progress.
• DebtTracker: The folks at “It’s Your Money” have put together various spreadsheets to assist in personal finance management with clarity and simplicity. The Checkbook Register can be used to manage transaction types in 200 categories while the Freedom Account sets aside funds for unexpected medical bills, auto repairs and other types of unexpected costs. There is also the Debt Tracker that implements installment plans to pay off debts; the Price Book for comparative shopping; and the Portfolio Allocation Spreadsheet that helps re-balance investment portfolios among others.
• You Need a Budget: For $60, youneedabudget.com offers a software program designed to raise awareness of day to day finances so a function can be assigned for every dollar in play. You Need A Budget has been recognized by Macworld Magazine, Lifehacker, About.com and Amazon.com as a viable tool that is easy to understand and operate.
• Mint.com: Possibly the best of the best when it comes to incorporating a truly dynamic approach to personal finance enlightenment. This program puts all monthly expenses in one convenient location for easy management. Mint.com also provides reliable security, bill reminders that are sent to cellular devices or email.

These software programs provide the essential tools necessary when making a concerted effort to reduce debt and maintain financial solvency. Personal finance management is not a spectator sport. Proactive planning and proper oversight are key parts of any successful plan for covering the present and saving for the future.

DC Randil believes knowledge is power. He writes about personal finance, accounting principals and other topics related to making every day better than the previous one.