Digging Out of Debt

Student loans, car loans, credit cards, hospital bills, keeping up with the Joneses, and spend, spend, spend. If you're like the average American you are saddled with thousands of dollars of debt. Debt is killing us, literally. The burden of debt causes stress, sleepless nights, and health problems resulting from stress. If you are serious about getting rid of your debt there is help. It may take years and you may have to make sacrifices you think may be impossible but think of how much better you'll feel when you don't have that burden hanging over you. Don't let debt keep you up another night make a plan to start digging out of debt.

Start with the small stuff

You have to know where your money is going. Keep track of every penny coming in and going out. Keep a small notebook and make two columns one for in and one for out. Every day write down the money that comes in, paycheck, monetary gifts, the penny you found on the street. Write down everything you spend. Do it for a month to get a good picture of where your money is going. The results may be shocking to you. What really was a wake up call for me was seeing that one month I spent more than I took in. That right there made me want to control my spending immediately.

Decrease Spending

Is it really that simple? Once you've gotten a handle on where your money is going, look at ways to cut all unnecessary expenses. Do you really need premium cable? Can you just go with the basic channels, or no cable? How often do you eat out? How often do you go shopping? Do you need that coffee from Starbucks every day before work? Are you paying for a $100 a month gym membership and never go? Do you need that cell phone contract? If you don't use it think about canceling or just switching to a cheaper prepaid plan. Think of ways to cut utility bills, insurance rates. Everything adds up. Think long and hard about your spending habits. Before you spend another dime think about if it's going to put you closer to or away from more debt?