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Anytime the economy is threatening, it is natural for us to look to ways to prepare ourselves for the worst that could happen. Even when the economic picture is rosy, many people worry about their financial future. For a number of people, that future is uncertain because of debt.

The amount of debt that is a problem does vary. For some, the knowledge that there is a $50,000 mortgage is enough to worry about the debt. Others get to over $100,000 in credit card debt with additional car loans, student loans and mortgages before they get concerned.

Wherever you are at, when thinking about eliminating debt, there are several common steps to be taken. Once those steps are addressed, then there are several options available for success.

COMMON STEPS

Before beginning a debt reduction effort, there is one basic requirement: Stop Spending! Yes, there are expenses. Yes, you cannot get buy without any spending. But you cannot eliminate debt if you are continually taking on new debt.

Once you have stopped all optional spending, there are two key sets of numbers that are critical. The first of these are the debts to be eliminated. It is important to collect the information for all debts. The information needed about each debt is the balance owed, the interest rate and minimum payment.

The second set of numbers is the available funds to put towards these debts. This includes net income after necessary expenses from any jobs in the household, proceeds from the sale of any items in the home and any savings that exist. We cannot consider all income when creating a debt elimination plan. As nice as it might be to not need it, we all have to eat and have some shelter. Most of us need a working vehicle to earn our income. Some of us have other obligations like child support, alimony, or tax payments to make.

Non-numeric, but just as important, decide how much change is acceptable. Some people go so far as to sell their home, live in a tent on a family member's property, and get second or third jobs until they have eliminated their debt. Most of us are not that extreme. All of us can - and usually need to - make changes that allow us to go from adding debt to eliminating debt. The changes may be as simple as eating out less often, checking books out from the library or exercising at home instead of at the gym. There are many levels of change between these extremes.

The amount of debt, the available funds and how much change we can accept will all impact how long it will take to eliminate

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