1. You must change. You have to change your spending habits and spend less than you make no matter what. Its good for everyone. Especially if you are in debt. I know its hard to do with our current lifestyle of keeping up, but when you are debt free, itll be much easier.
2. Cash only. You have to go to a full time cash only basis. What cash you have to spend is all the cash you have. Once its gone, its gone. You have to spend correctly. Dont spend it all before your next payday.
3. Document. You have to document your spending to see what you are buying. This will help you see if you still have a problem and where the money is going. This will allow you to control your spending if you see all of your monthly spending in one place.
4. Attack Debt. Pay off credit card debt first. The highest interest rate must go! Pay them off and then work towards assets that appreciate in value like your house. Pay it off last.
5. Lower your interest rate. I called the credit card company to tell them I was going to cancel their card as I consolidated and paid off my other cards. To my surprise, they offered to drop the interest lower than all my other cards so I put all those higher rate cards on this lower rate card. They did that just for the asking and now Im paying less interest and more towards the principal! Go team!
6. Plan. You have to have a plan and may need to create a payment plan. There are tons of software out there to look at and use, but dont hide behind the software on trying to find a debt free solution. Plan on paper if you have to. Just do it.
7. Stay the course. Dont waiver. Spending less and paying off bills is a drag, but it will get better soon and you have to stay strong to make your life even better. Keep your goals. Write it down. Check your progress. You can become debt free!
Sometimes debt can become overwhelming and even scary at times. If you spend too much, you must make changes before it gets out of hand. You can get out of this pit of debt and become debt free and have even more buying power.