How to get out of debt

1. Cut up the cards. You can always order new ones once the mess is cleaned up.

2. [url=http://frugal1.blogspot.com/2006/06/track-your-spending.html]Track your spending [/url]. Clark recommends you do this for a couple of weeks. I suggest you do it forever. It is outlined in [url=http://www.amazon.com/gp/product/0140286780/qid=1149210662/sr=2-1/ref=pd_bbs_b_2_1/104-6372803-5307169?s=books&v=glance&n=283155][i]Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence, [/url][/i]by Joe Dominguez & Vicki Robin, which you can get in your public library. You will be amazed at all the ways money is leaking out of your life, and how easy it is to cut back once you find out.

3. Create a[url=http://frugal1.blogspot.com/2006/06/zero-based-budget.html] good budget[/url]. It is like giving yourself a huge raise.

4. Cut your spending to the bone using [url=http://savingslist.home.mchsi.com/]The Savings List[/url], listening to Clark Howard, and going to the library to check out [i][url=http://www.amazon.com/gp/product/0375752250/qid=1149210583/sr=1-1/ref=sr_1_1/104-6372803-5307169?s=books&v=glance&n=283155] The Complete Tightwad Gazette [/url][/i], by Amy Dacyczyn. This is the bible of frugal living.

5. Pay off your debt using [url=http://www.mdmproofing.com/iym/ramsey_debt_snowball.shtml]Dave Ramsey's Debt Snowbal[/url]l and read these two books:

[url=http://www.amazon.com/gp/product/0785263268/sr=8-1/qid=1149210336/ref=sr_1_1/104-6372803-5307169?_encoding=UTF8][i]The Total Money Makeover: A Proven Plan for Financial Fitness [/url][/i] by Dave Ramsey

[url=http://www.amazon.com/gp/product/0805420789/qid=1149210507/sr=1-1/ref=sr_1_1/104-6372803-5307169?s=books&v=glance&n=283155][i]Mary Hunt's Debt-Proof Living: The Complete Guide to Living Financially Free [/url][/i]

There are several methods for paying off debt, but Hunt and Ramsey have counseled many many people, and both suggest smallest debt to largest. They also have some outstanding advice on how to live debt free even after you have survived this debt. Some folks recommend highest interest rate to lowest. Both methods will get you there. The first works because the snowball accelerates more quickly, the second makes sense mathematically. The important thing is that you have a plan and attack it methodically.

Another excellent book that presents a similar plan (though less intense and from a secular point of view) is [url=http://www.amazon.com/gp/product/0743269888/sr=8-1/qid=1154435859/ref=pd_bbs_1/104-6372803-5307169?ie=UTF8][i]All Your Worth[/i][/url], by Elizabeth Warren and Amelia Warren Tyagi. The plan is based on the concept of balancing needs, wants, and savings. They suggest taking your income and spliting it Must-Haves (50%), Wants (30%), and Savings (20%). Personally, I prefer to keep both of the first 2 under 50% and savings over 50%, but the point is finding a balance that works. They have a lot of good get-out-of-debt advice, as well.


For real get-out-of-debt advice and inspiration, go to [url=http://www.daveramsey.com/radio/home/index.cfm?FuseAction=dspContent&strMode=dspShowArchives]Dave Ramsey's radio show archives[/url] and listen to his show for free online.