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In order to keep your cash balances high, and have enough money for the finer things in life, you need to manage your debt. Here are the top four mistakes people make regarding debt management:

• Failure to develop a financial plan: You can't wish away your debt load. You need a real plan, with a well-defined budget that accounts realistically for your expenses and income. When you put these items down on paper, the numbers may surprise you. They can also explain a lot about where your paycheck goes every month.
• Failure to check credit reports: Identity theft is a real concern that you can monitor with regular credit checks. But that's not all. Credit card issuers, lenders, and even your bank, can make mistakes. It's important to erase any incorrect black marks from your credit history. If you leave them to fester, your next debt consolidation loan application could be turned down.
• Waiting too long to invest: The most powerful investment tool on your side is time. Compound returns work their magic over the years, and even a measly 4.7 percent savings account interest rate will double your money in 15 years. The time to start investing is as soon as you have the money to open an account.
• Waiting too long to develop a plan to get out of debt: Just as compound interest works in your favor in investment accounts, it works against you when you have debt. The sooner you get your financial house in order, the lower your accumulated debt will be. Consolidate your debts today with a cash-out refinancing or bad credit home equity loan. You'll reduce your monthly payments, move high-interest balances into a reasonable home equity loan rate, and start rebuilding that damaged credit history.

Ultimately, you need to transform your past bad habits into good ones. You may think that they're harmless, but they can really hurt you in the long run. Collect your receipts for a month or two and fit the expenses into the budget that you already drew up. (You did, right?) Maybe you can't. That's the point-bad habits drove you into debt, and will keep you there until you do something about changing them.