"Get Out of Debt"
Easier said than done. It is not impossible and you can do it. You will need to really want to get out of debt because you will need to make yourself live on a given amount of money and it may take some time.
- Decided how much debt you have by adding up all of your outstanding bills. (A very important first step because you must know EXACTLY what you need to pay off to be debt free)
- Do not leave out any bills, credit cards, tax payment etc. WRITE then all down.
- Now, you need to know exactly what your income will be. (Take home dollars after taxes.) Write down the amount. Also, write down any other income that you can regularly count on. Make a separate list of any money owed to you. When will you be paid back?
- Now that you have written down this basic information, Write Down what you need (dollars) to live on for a year; a month? This may be difficult but a basic budget outline may help click .
- At this point, planning how to become debt free begins to get difficult. Your income may not be sufficient to live and pay off bills. Two solutions:
- make more money (2 jobs)
- Reduce living expenses.
Difficult decisions. You may need to do both.
- You will need to figure out how much each month you can afford to pay on your bills and how long it will take. The quicker you pay them off, the cheaper it will be. You will want to pay off the most expensive first.
- If your situation seems impossible, there Consumer Credit Counseling Services might be able to help you. Check your local United Way Services.
- Once you have a plan for the amount you will pay off each month – DO IT.