How to Kill the Debt Dragon

Killing the debt dragon is a practical single parent's guide to eliminating unnecessary debt.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Patience
• Perserverence
• Internet assess
• Paper
• Pens
• Calculator
• Access to additional income

1. 
    
   Developing a plan of action

   Identifying the problem
   
   Most people try to avoid debt problems, and pretend that they do not exist. Today is the day that we slay that ugly debt monster. Begin by pulling out all of your bills, if they are not overdue congratulations. If they are overdue devised a plan and locate your creditors numbers.

2. Obtain pen, paper and write out all of your expenses for the month. Be sure to include groceries, insurance policies, and if you have children their expenses as well. Look over that budget, realistically can you afford to make your payments?

3. After creating your budget, is there a deficit? for example if you make 2000 a month and your budget is 2500, then you may have to get a part time job, cut all extra incentives, and stick to a plan.

4. Now you are ready to begin to eliminate your debt

5. Call all of your creditors and talk to them, see if you can work out a deal. If they accept the terms of the deal, make sure you are able stick to the terms. If you have a good history with them they will work with you.

6. Any gifts people are willing to give, ask for money or ask them to help you pay a bill.
   Additionally if you get back money from your tax return, pay off at least one of your bills each year.

7. In order to stay on track, do not close your credit cards, but hide them from yourself or give them to a trusted family member to keep so you will not be tempted to wind up in debt all over again. Do not close your accounts, it could make your credit score go down.

8. Getting out of debt takes time, but by staying consistent, you will get out of debt.

Tips & Warnings

• Want to see your credit report? You can access myannualcreditreport.com
• If you do not have the patience to get out of debt, see consumer credit counseling
• The only way to stay out of debt is to change your spending habits, and learn to use only what you need in credit. Live below your income and not above.