You Can Get Out of Debt in 3-5 Years

Yes you can be debt free. Don’t feel like it’s just you because the average debt for all of us has increased by 85%. Each household has $10,000 or more just in credit card debt.

You need to take care of your basic needs first. You need to take care of food, a roof over your head and maybe even some transportation to get you to work. That doesn’t mean you can justify a new car or spending a lot of money on groceries or eating out. It’s time for you to cut back on stuff like this so you can pay more on your debt. Think about trading your new car in on a used one.

Buy a good cookbook and start cooking more food at home. Try to buy food that’s on sale. Plan your meals for two weeks and buy everything you need at one time. Make a list and just buy the stuff on your list.

So now your going to have to budget. Go through all your bills and compare them to your income and see how that comes out. Are you spending more than you are making? If that’s the case you have to quit spending or start making more money.

Once you have your budget figured out you have to put at least $20 in aside to be spent on you. Spend it on something you really want. Only use the set amount and only do this once a month. This helps me from feeling so deprived while I’m on a budget. Otherwise I get tired of being on a tight budget and go blow a hundred dollars. This is a much better alternative.

I almost forgot, quit using your credit cards! Stop spending money that you don’t have. Pay everything with cash or debit. I had to put mine away and quit carrying them with me.

Now when it comes to paying credit card debt you have to get out all your statements and look at your balances and also your interest rates. Depending on what you have you can do it one of 2 ways.

You can start paying off cards with the lowest balance or you can pay off credit cards with the highest interest rates. The main thing is that you pay the minimum on all other cards and put the rest towards that one card. When you pay it off do the same with the next only add the minimum that you were paying on the previous card to the total on that one card.