SOME STEPS TO TAKE
The first thing to do when you have found yourself in massive (or not so massive debt) is to stop digging yourself further into the hole. Do what you have to do whether it's cut up your credit cards or freeze them in a metal can in the freezer ( a metal can can't be re thawed in the microwave). From this point on live on cash.
TRACK EXPENSES
The second step to take is to write down all the little expenses (no matter how small) that you incur for thirty days. You will be surprised at how they add up. Once done you should be able to find where you can cut back on discretionary expenses. You don't have to eliminate them entirely and take a vow of poverty, just decide which ones you can live without. Then when your debt are paid off you'll have so much more cash to enjoy them again.
Credit counselling is an option, a qualified one will help you set up a realistic budget to get your debt paid off. Look in the yellow pages but remember to interview at least three as though the counsellor is applying to work for you - because they are.
If you don't want to go that route through a credit counsellor the next step to consider would possibly be debt consolidation. There are companies out there - they always seem to advertise during the Superbowl or any other event that takes place after Christmas - presumably when people's debt levels are highest after the holiday splurge.
While this can be potentially useful or helpful, again you must interview several different companies before signing on - they are applying to work for you. You also must remember not to take on any further consumer debt. Some people who I've known took a consolidation loan then maxed out their credit cards again, did that several times and eventually went bankrupt - one for the second time.
DEBT SNOWBALL
Another way step to take is to write down every debt that you have - from the smallest to the largest. This is called the debt snowball. You attack the smallest debt first and with the others pay only the minimum amount.
With the smallest debt you take the minimum amount and add the amount of what you cut from your discretionary expenses and put it on that debt. Once that debt is paid off give yourself a reward (a small reward) to celebrate. Then get back on the attack for the next debt in line. Use the minimum from that debt as well as everything you were putting on the previous debt and you will have it eliminated a lot quicker. Continue this until all your other debts are paid off.
INCREASE INCOME
The final step on your journey to being debt free is to increase your income. There are multiple ways to do that - Work extra hard and get a promotion or find a second job. If you find the second job makes sure that your main job doesn't suffer and it (main job) will cover all your expenses once your debts are paid off. You don't want to be a slave forever. Use the money from the second job to put towards your debts and use it only for that purpose.
For more information on how to get out of debt go to:
For more information on how to increase your income go to:
thegreatestincomeopportunities.com.
