Carefully choose necessary items to keep. Terminate the remaining services.

6) DOWNSIZE.

Downsizing involves scaling back on major purchases and finding cheaper alternatives.
Generally, downsizing to a smaller house and smaller vehicle makes sense from a financial standpoint if you wish to reduce debt.

If you sell a 3000 sq. ft. home for one half the size, you would have lower mortgage and property tax rates.

Likewise, replace an SUV or luxury vehicle with a fuel efficient, affordable car that meets your needs.

7) ELIMINATE CREDIT CARD DEBT.

A) Keep only one credit, the one offering the lowest interest rate. Use this card for dire emergencies only.

B) Always pay more than the minimum payment. Making minimum payments only benefits credit card companies who profit by charging high interest rates on unpaid balances. Making only minimum payments keeps you in debt longer.

C) Pay the smallest debt first. You achieve results and successes more quickly. Build on that momentum and use a step-by-step approach. Next, pay off the card with the highest interest rate.

8) GET HELP.

If you've never educated yourself about money management, it can be difficult to become debt free without outside help.

* Consult a certified financial adviser who can recommend successful debt- reduction strategies.
* Read. Read. Read. There are numerous helpful books, magazines, and newspapers that offer guidance about debt management.
* Get free advice from family and friends.
* Attend financial seminars and workshops.
* Visit online discussion forums to post questions and read user comments.
* Use credit-counseling agencies as a last resort.
- Some agencies are not reputable and charge outrageous fees.
- Some lenders prefer not to negotiate with debtors enrolled in credit counseling programs.
- There's no guarantee they can repair your credit rating.

9) CHECK YOUR CREDIT REPORT.

Credit reports occasionally contain clerical or computer errors. This effectively lowers your FICO scores. Therefore, it's imperative that you and check your information monthly.

Request free credit reports and report inaccuracies promptly to the credit bureau:
www.equifax.com
www.experian.com
www.transunion.com

Reasons for checking:
* Inaccuracies hurt your credit rating.
* Employers routinely run credit checks on perspective employees. You may be denied an important job or promotion.
* Lenders may reject you for loans, housing, and insurance.
* To ensure you're not a victim of fraud or identity theft. Having your identity stolen cripples your credit and your financial stability.
* Errors prevent you from obtaining credit in the future.

Ultimately, make sure you have a clean credit report.

10) CHANGE YOUR ATTITUDE.

Cutting back from well-established personal habits requires a complete lifestyle change and discipline.

Being in debt is only a temporary state. You don't have to be in debt forever. Change your attitude about spending and learn to live on less money.

ADDITIONAL RESOURCES:
http://www.e-personalfinance.c om/article/How-to-Get-Help-for -Credit-Card-Problems.html

http://articles.moneycentral.m sn.com/SavingandDebt/ManageDeb t/10BadHabitsThatLeadToDebtDis aster.aspx

http://nextarticles-real-estat e.blogspot.com/2007_07_28_arch ive.html

Learn more about this author, Audrina Kingston.
Click here to send this author comments or questions.

• << previous page
• 1
• 2
• 3

---

Add your voice

Know something about How to get out of debt?
We want to hear your view. Write now!