by Dean Holmes

Created on: August 14, 2007

It's the way of the world these days. Whether you finance a car, mortgage your home, buy those extra Christmas gifts for someone on plastic...95% of people are in some form of credit debt.

And then there is the ever-growing larger group of those that engorge themselves into debt beyond their capacity.

Surely you know someone that has overspent their limits, resulting in missed payments and the dreaded trip to the mailbox only to find past due notices; or in worse cases collection agencies calling all hours of the day looking for their money. Or it could even be you. Debt is the number one cause of family problems and a leading cause of stress.

But...it can be eliminated.

So now that you have decided to turn your credit problems around and get back on track, it's time to come up with a solid plan to repay your debts and restore your credit rating. Before you devise a plan to repay, you need to figure out your total owing. Gather up all if your credit related expenses (not monthlies such as rent or hydro) and calculate a grand total of what you owe. If the amount you owe is over 40% of what your monthly salary is, you definitely owe too much and are living beyond your means. Here are some different ways to reduce your amount owing per month:

1. Cut back and budget yourself. This means of restoring your credit will take longer but there are two major benefits from this: first, you will not have the black marks of bankruptcy or credit counseling, and second, you will manage your money far better than you ever have resulting in less chances of poor spending habits. What do you really need to spend money on? What can you live without? Here's a sample of things to think about when spending money:

-Buy store brands instead of name brands.
-Buy more items in bulk.
-If possible, walk or ride a bicycle to work.
-Bring homemade lunch to work as often as possible.
-Sell your big shiny newer gas guzzler and buy an older compact car.
-Eliminate all of the unnecessary options on your land line phone such as call waiting or any others you have to pay for.
-If you do dine out, get smaller portions. Drink water instead of soft drinks or alcoholic beverages.
-If you are paying for hydro, keep the AC set at 24C/75F and in the winter keep the heat at 19C/66F.
-Choose a less expensive cable or satellite package.
-Clear out items in your home you do not use - have a yard sale.

Each and every penny will add up and you'll see how much extra you will have just by refraining or eliminating things you

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