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Get Out of Debt

No one wants to be in debt! The more debt you are in, the more stress you have as you try and figure out how to manage it, pay it off, and just get rid of it. Unfortunately, most of us are going to wind up in debt at least once in our lives, often due to circumstances beyond our control. When that happens, all we want is to figure out how to get out of debt, and on with our lives. How can you get out of debt? Try some of these ideas!

Dave Ramsey has created something called “The Snowball Plan”. The main idea of this plan is that you focus on paying off your smallest debt first, and get it out of the way. You gain momentum with each debt you pay off, and this will give you the motivation to continue paying off the rest of your debt, until you are debt free.

It is a great idea to start writing things down. Make a list of all your debts. Figure out how much money you bring in each month. Write down everything you spend, and what you spend it on, for a month or two. This will give you a big picture about where, exactly, your money is going. It is possible that you will discover that you aren't being as smart with your spending as you could be. For some people, at little clarification is all they need to open their eyes, and start working on paying off their debt.

Other people can benefit from a more psychological approach. Make a conscious decision that you will not spend more than you are reasonably able to. Create a budget that takes into account how much you earn, and all of the bills that you must spend money on. The amount that is left over, (if any) is what you can spend on things that are not necessities each month. For some people, this means not going to Starbucks as often as they have been doing in the past, and eating out much less. Making changes is never easy, but it is worth it. Focus on how good you are going to feel when your debt is gone, to get you through the time it takes to pay it off. Remember, this is only temporary! Eventually, if you stick to your plan, your debt will be gone, and you will have more money to spend.

Consider credit counseling. A credit counselor can assist you in creating a budget, and a debt management plan. In some cases, credit counselors can talk to your credit card companies, and the companies you have loans with, and negotiate a lower interest rate, or a smaller minimum payment that you will have to pay each month. It is entirely possible to do these things on your own, but some people are more comfortable having a credit counselor help them with it.