Help Me Get Out Of Debt!
or, Help Me Make A Budget
or, Help Me Be More Financially Responsible

You are now well on your way to getting out of debt. If you've been able to follow the process up to this point you have demonstrated that you can analyze and track your spending. Now it's time to begin the process of reducing your debt and putting you on the path to being debt-free. So what's the secret of getting out of debt? Let's find out.

You primary goal is to maximize the 'leftover' amount. The amount you have left over after paying all your bills. One good way to maximize this amount is to look at your expenditures and determine the things you can do without. Ask yourself these questions:

See the Saving Money article for more ideas.

The other way to maximize the 'leftover' amount is to bring in more money as income. Ask yourself these questions:

Be creative. If you stop and think about it, there are many ways you could bring in more money. The goal is to keep expenditures constant or lower, i.e. don't start thinking you can spend more just because you earn more because you're still in debt.

Now that you've maximized your 'leftover' amount, what to do next is extremely simple and is the secret to getting out of debt:

  1. Find out the interest rates on all your loans and credit cards.
  2. After paying your normal monthly bills, take your entire 'leftover' amount and send it to the highest interest rate loan or card.
  3. Make the minimum payment on all others.
  4. Do this until that loan or credit card is paid off.
  5. Once the loan or card is paid off, close the account and repeat this process.

Believe it or not, it's really just that simple. What happens when you do this is you are lowering your debt every single month and when you pay off just one of your loans or credit cards that amount is now free to pay down towards the rest, accelerating the process greatly. You just have to have enough patience and self-discipline to start the process and stick with it.

Once you have achieved this, you have proven to yourself that you have what it takes to start saving money. You now have the skills needed to become wealthy.

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Want to discuss getting out of debt?

Go to the Helpation Debt Forum!