by Stefanina Hill

Created on: July 22, 2009

Getting out of debt is a common goal for many people. A life free from the weight and stress of being in the red can sometimes slip out of being a reality and seem like a far off dream. Beating debt is a very achievable goal but it takes the right approach, a clear plan of action and then the determination to commit to that plan.

Before you get started on the number crunching part of this process you need to make sure that you're armed with the right attitude. Part of the reason that debts can escalate even during a period of time where it would be possible to eliminate them is that it's tempting to ignore the situation or make up reasons to excuse it. Bills are ignored, spending goes unchecked and even increases because it's easy to think that since you're already in debt it doesn't matter what you spend.

If you are serious about getting out of debt for good then excuses can't be part of the picture and neither can shying away from facing up to your situation. Whatever the amounts owing you can make a plan to pay it all back but you're never even going to get off the ground if you're not willing to take a deep breath and face up to the challenge ahead.

If you don't feel up to doing this by yourself then you can reach out to family, friends or find a support group. Using a support group, on or off line, is a great way to get advice on both the financial and emotional aspects of debt repayment. You will be able to meet people in support groups who beat much larger debts than yours while equipped with less means than you possess. This is a vital reminder that you're not working on a pipe dream but a solid, real life goal.

Once you're ready to square off to the problem gather up all the information you have regarding your debts and make a debt overview on paper, a spreadsheet package or both.

You want to be able to easily see who you owe money to and the individual amounts as well as an overall total. List the interest rates being paid and any other salient details.

This overview is your challenge, the next step is to make an expenses overview and an income overview. These two new overviews are the fronts upon which you will step out to meet the challenge.

First up list all your expenses or outgoing funds. It's important not to skimp on the details you're not proud of. If you buy a tasty lunch at work everyday instead of eating packed sandwiches or treat yourself to a fancy coffee on the way home then this needs to be listed. You cannot just avoid listing

• 1
• 2
• 3
• 4
• Next Page >>