FInancial Tips for Getting Out of Debt

Ten years ago, I was in major financial trouble and facing possible bankruptcy. I was a single mom with three kids and $36,000 in debt. I was sick of waking up every day trying to live in denial but always having that sick feeling in my stomach, from the bills I wasn’t dealing with and were not going to go away. I was tired of the pile of bills on the counter I couldn't bring myself to open. One day I decided to change that. After taking a good long look at my money situation, I made a plan. Now, ten years later, I’m not only debt free but I wake up everyday free from the weight of all the money worries I had before. 

If you find yourself deep in debt and constantly worrying about money, you are not alone. Statistics show the average American is deep in debt and living paycheck to paycheck. CNN Money.com reports that “the American consumer has become deeply addicted to spending, running up ever higher levels of debt in order to live in a fashion that is beyond his means.”Many would face financial ruin with an extended illness or loss of a job. Experts say money is the number one issue couples fight about and the number one cause of divorce. Filing bankruptcy is becoming an epidemic in our country, leading creditors to change laws to make filing even more difficult. Most people don’t want to file bankruptcy, but they don’t know what to do as an alternative.

First, you have to GET REAL. Get your checkbook, your pay stubs, your bank statements, and all your bills together. Sit down (If you are married, sit down together) and make a list of exactly what bills you owe, listing the total outstanding balance on each account in one column, and the minimum payment in the second column. In the third column, list the percent of interest rate the creditor charges annually on that debt. List not only mortgage, car payments, and credit cards, but also outstanding doctor bills, loans to family, and any other debt you have. This is not the time to hide things from your spouse. You will need their help and cooperation to get out of this mess.

Most people use credit cards much more often than cash.

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