It would be foolish to write a book about mortgage debt and not talk about other debt that affects your life. The point is that strict attention to debt — all debt — when you're young can alleviate the pressure of debt when you're older. Some ideas for starting out right are discussed in the following sections.

It sounds basic, but tracking spending and budgeting what you do spend — with reasonable allowances for fun and certain luxuries — will go much further toward controlling your future dealings with debt than you realize.

For a template of a basic budget turn to Appendix E, and for a networth worksheet, go to Appendix F.

Whether you do it on paper or on the computer, tracking your spending on a daily or weekly basis is a smart way to pay your bills, make investments, and keep your debt in control. If you can confine most of your spending to debit and have the card tied to an account you can download into your computer, it will make tracking and categorizing your spending very easy.

That means paying all bills on time — your mortgage, your credit cards and your utilities — and checking your credit data annually for accuracy. (For more information, go back to Chapter 5.) Also, don't exceed your credit lines. Along with late payments, this practice is a major way to lower your credit score.

While using credit cards responsibly is part of building a favorable credit history, consider using a debit card with a link to one of the major credit card issuers (such as MasterCard or Visa). Retailers, restaurants, and other institutions accept these cards easily, and the amount you spend will always be linked to the cash you have in your checking account.

With today's college students graduating with an average $20,000 in debt, college borrowing is more daunting than ever. But keep in mind this is some of the best debt you'll ever have as far as terms and rates, so just pay it off.