Debt is an issue that takes over the lives of so many people, year after year. It is a horrible situation to be in and can take years to get out of. However, there are steps that you can take to pull yourself out of debt and stay out of it. The first step is figuring out how much debt you actually have. Getting all your bills together, adding up the money you owe (including interest rates) and coming out with a set number you need to work toward, is the only way to start this process. The second step is finding out where your money is going. Spending money on things like coffee, donuts and fast food can add up quickly. Putting that extra $10 or so towards your debt will help you tremendously in the long run.
Step number three is paying more than the minimum payment on your credit cards. You can use the same 10 dollar method with this as well. Put an extra $10 to your credit card payments every month and you’ll be surprised how fast it can add up. The fourth step is to simply stop spending so much money. Don’t carry credit cards with you anymore, pay in cash, make no more than one ATM trip a week, exchange clothes, shoes and household items with friends instead of buying new things and turn down credit line increases. These things will help you stay on track with your money and keep you from spending it on unnecessary items.
Steps five and six are pretty self-explanatory – have a monthly spending plan (be aware of how much you make a month and what that money needs to go towards) and take bigger steps to growing your income (move into a less expensive home, cut back to just one car instead of two or enroll your children in a public school instead of private). Once you start to acquire some more money, put it towards your unsecured debts, as those are the ones that usually have the highest interest rates. Lastly, understand your spending issues and why you had them in the first place. Being in debt is not an easy ride and can cause more unwanted problems in your life then you already have. Be smart about your money and budget, budget, budget!