Build in emergency fund to avoid piling up debt

Build in emergency fund to avoid piling up debtOften times, consumers who are troubled by debt do not get there by overspending. It can be the result of a medical emergency or any other situation where one needs funds fast, and those unforeseen events can lead to a bad credit score if you are unable to make the credit card payments every month. This ultimately affects your chances of securing a good car loan or other line of credit.

Although it is easier said than done, one can avoid piling up the debt by creating an emergency fund. Saving can be quite difficult in the current economy, however, there are ways to find a little more money in your bank accounts.

One way to save is to change your W-4 form so that you stop getting a tax refund. While the extra sum once a year feels pretty great, it's better for you finances if you simply get paid more each month and forgo the annual check. According to financial analyst Suze Orman, "the more exemptions you claim, the less money will be withheld from each paycheck."

Also, make sure to check bank statements to ensure that all transactions are correct, and consider enrolling in a direct deposit program at work. These deposits clear right away, making you less likely to write bounced checks and incurring the high fees that go along with them.