February 11, 2008

Getting out of debt

Getting into debt is easy when compared on how to get out of it, but even though at the time it may seem to be a mountain that is impossible to climb there are ways of getting out of debt. It may take a bit of time and a lot of organising but there always light at the end of the tunnel.

This is a guide not a formula to help someone get out of debt, in order to begin the process back to the black, these points will help:

Stop adding more debt
Get rid of your credit cards
Change your attitude
Stay busy
Change your spending habits
Cut your spending
Embrace a simple, frugal lifestyle
Always lookout to improve your current income
Create additional sources of income
Build an emergency fund
Avoid paying fees when possible
Use balance transfers
Make a budget
Reuse and recycle
Make your intentions public
Start a blog about your effort
Surround yourself with the right type of people
Move!
If something is available for free, don’t pay for it. Throw the money at your debt instead!
Always pay more than the minimum payment toward your debt