Have a look at the 5 financial tips for the second week of October 2013.

Tip no 1: Debt collectors try to know anything and everything about your personal and professional life. Take steps to protect your privacy.

Debt collectors try to gather information about you from the web and various other sources. Collectors want to know how much you make without even taking your permission. They collect important data such as where you buy items or go for a vacation to have an idea about your financial standing. If you've stopped making payments on debts intentionally or unintentionally, then be careful while sharing your personal information through various social networking websites such as Facebook, Twitter, Google Plus, etc. Debt collectors are keeping a close watch on your movements through the social networking websites. So, if you've bought a new car or you're frequently hanging out with friends, then think twice before giving the updates to your friends through social media.

Tip no 2: If you live for today and give a damn about the future, then debts will surely knock at your door. Decide if you really want to invite debts in your life.

If you're only concerned about your present life and give absolutely no importance to your future, then understand this fact that your future will be in a mess. It is important to plan for your future or else you may end up having no money for looking after your family. Everyone wants to live for the moment. There is no doubt about it. However, if you want to lead a decent life in future also, then start planning for it from now on. Save money and pay your bills on time to avoid debts in your life.

Tip no 3: Ignorance is not at all bliss when it comes to managing money. Knowledge increases your power. Whet your appetite for it.

You won't be able to manage money properly without any knowledge on the financial matters. In fact, there is a great possibility that you would make false financial decisions. For instance, you can't pick the right stocks without following the market trends and updates. If you try to invest in stocks without even having a clue about the performance of the stock in the last few years, then you may end up losing a substantial amount of money.

Research and increase your knowledge before making a financial move. Follow what the industry experts are saying and increase your knowledge.

Tip no 4: Timely bills payments indicate that you take your financial responsibility seriously. Pay your bills on time and create a good impression upon your creditors.

Creditors check your credit report before deciding to work with you. They check your payment history to know if you're a responsible borrower. If they see that you have always made time bill payments in the past, then the creditors will have a good impression upon you. They'll consider you as a responsible borrower and as such will not hesitate to approve your loan application. In fact, they may offer credit at suitable terms and conditions.

Take all the steps that you need to pay your bills on time. Set up an automatic payment system with your bank so that your current creditors receive payments on time. Keep them happy to make a good impression upon your future creditors/lenders.

Tip no 5: Bankruptcy doesn't provide the ultimate solution to your debt problems. You have to change your lifestyle to fix problems.

Bankruptcy does not solve your financial problems permanently. There is no doubt that it will solve your current debt problems in life. However, this doesn't imply that it will help you avoid debt troubles in future too. If you start leading a lavish life and spending money recklessly, then debts will enter into your life yet again.

Bankruptcy or any other debt relief option can only give a temporary solution to your problems. If you really want to put an end to your debt problems, then live frugally and change your lifestyle. Save money and keep your creditors happy by making timely bill payments.