How to get out of debt

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By SaraJoRN
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get out of debt

Ive been there-debt can suffocate you!

Difficulty: Easy

Instructions

Things You'll Need:

strong will
determination
calendar and/or pencil and paper

Step 1

First, you have to know what money you have coming in before you can really start. I suggest keeping a notepad in your pocket and for an entire month write down every penny you spend. BE HONEST!!
Step 2

Develop a list of your creditors/all persons you owe money to. In one column write the amount you pay monthly and in the next column write the total balance due.
Step 3

Set yourself up a budget. Pay with only cash. Stop using the debit card! Give yourself enough money to get through but stop spending on the uneccessary items you learned about from doing step one!
Step 4

Start paying off the smallest bill you have. Dont look at interest rates.-You will get more paid off faster by doing it this way. Pay the minimum on all other bills and apply all extra money on the small one. When that bill is paid in full add what you were paying on it to the next smallest amount owed.
Step 5

Have a yard sale. Sell anything you havent used in the past year. Use that money to pay off/towards a bill.

Comments

grantbellisi said

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on 12/5/2009 Great Tips! Debt can be an awful downward spiral, i am embarrassed to say i had all my credit cards maxed out at one point. I was in deep trouble until my friend recommended i get a free debt repair consultation, i was able to overcome my credit card debt with their aid within a year. Heres a link where i got a free consultation i thought i would share it to help everyone, http:// cli . gs / free-debt-repair