Debt management plans are essential at all levels: personal, household, enterprise and institutions including government. Since we are in a personal finance site, we will deal with debt management plans at the personal and household level.
Take the following steps:
We should not follow the bad example set by governments, where spending is financed by debts. That's why many governments are in financial mess because of poor financial management- spending money they do not have. In fact, governments should prepare their own debt management plans instead of borrowing again to pay for existing debts.
Personal debt management is just a microcosm of debt management at institutional and government levels. Personal or household debt is much easier to handle because it involves direct decision, a personal choice.
Proverbs 22:7 of the Bible says that "the rich rules over the poor, and the borrower is servant of the lender". If you are a servant, you are subject to someone else. In effect, you do not have freedom. It affects your dignity.
One of my favorite books in the Bible, Ecclesiastes gave profound explanation on our lifestyle and spending behavior. Ecclesiastes 4:4-6 says,
"I have also learned why people worked so hard to succeed. It is because they envy the things their neighbors have. But it is useless. It is like chasing the wind"
"They say that a man would be a fool to fold his hands and let himself starve to death. Maybe so, but it is better to have only a little, with peace of mind, than to be busy all the time with both hands, trying to catch the wind"