Plenty of people are living beyond their means, falling further into the red.

Whether it's keeping up with the Jones' or buying the latest Plasma TV, a lifestyle we can't afford will often result in financial anxiety.

These days it's all too easy to get a credit card.

We don't think twice about putting the groceries on plastic if we're a bit short. Turn the clock back 30 years and credit cards were never used to pay for daily living expenses.

Obviously there is some debt that many of us can't live without.

Buying a home incurs a mortgage, and maybe a car loan is required for a set of wheels.

There are however, a few golden rules to apply when using credit, which may just determine if there is a better way to go about your purchases.

Don't live beyond your means. This term refers to buying things you can't afford.

Living with debt is living with the knowledge that, at some point, it needs to be paid off. Living without debt is living.

Avoid spur of the moment purchases, also referred to as impulse shopping. If you see it and like it, but it's not a necessity, how about saving for it, and buying when you can afford it.

Pay off debt as soon as possible to avoid high interest repayments.

The longer you leave your debt, the bigger it will get.

If you do have an accumulated debt, use what you have in savings to pay it off. A maxed out $2000 credit card will attract around 15 per cent interest; where as your $1000 in savings will only earn you around 5 per cent. Sure it's a nice feeling to see you've got some money hidden away for a rainy day, but the feeling of knowing your debt free would sure be better!

While, undoubtedly, we enjoy the convenience of using credit to purchase over the phone or internet, we no longer need to rely on credit to do so. There is now the option of VISA Debit where you use your own funds to purchase online or over the phone.

Speak to a financial institution about this option, as

well as debt consolidation if your spending habits have landed you in hot water.

*Sara Morrison is business development manager at South West Credit.