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Step 1
Stop using those darn credit cards. One of the main reasons why you are in so much debt is because you bought stuff you couldn't afford on credit. Therefore, you must stop the madness now. If you don't have the cash to pay for it now then you aren't going to have the cash to pay for it later either. Therefore, you must cut up those cards, throw them away and cancel them for good. Use cash only from this point on and if you don't have the money, you can't get the item - plain and simple.
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Step 2
Get mad and committed to financial freedom. Being in debt stinks and because of bad choices you made in the past, you are now suffering big time. Get mad at those credit card companies making millions off innocent people like you. Get angry that they've taken advantage of you all these years and get rid of those credit cards for good. By being committed to being debt free, you will make better financial choices now and in the future.
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Step 3
Evaluate your current financial situation. No more hiding from your bills. Now is the time to face the piper. Get hold of those bill collectors and credit card companies and find out how much money you actually owe. Determine the amount of income you have to work with by creating a spending plan. Your plan should include necessities, debt reduction and miscellaneous items as well. Allocate all your money to its necessary category and don't go over that allocated amount!
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Step 4
Pay down that debt. Pay down your debt starting with the lowest balance first (to build confidence) and then once that is paid off, apply that payment to the next bill on your list. Keep going until you have paid off all your bills.
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Step 5
Make extra money and pay off even more. To really pay off your debt faster, apply all extra payments to debt reduction. Therefore, if you work overtime or receive a tax rebate, instead of buying something new, apply that extra cash towards debt reduction. The same goes for any part time jobs you acquire. Use them to pay off debt and watch your debt shrink.
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Step 6
In conclusion, you can get out of debt by getting made applying the above mentioned free debt management advice. By not using your cards any more, evaluating your financial situation, paying down that debt, making extra money and paying off even more, you will be debt free and will be able to give free debt management advice to others. Good luck - now get to it!
Comments
openwave said
on 11/17/2008 Thank you. Have a good day
markhenry said
on 11/15/2008 Nice stuff about debt management.
sanegds said
on 11/13/2008 Well written. Loved that article.
openwave said
on 11/13/2008 I loved it!
Ericcanuck said
on 11/12/2008 Nice work