Start The Road To A
Debt Free, Stress Free Life

When reaching the point that you can't make monthly payments on debt and struggle to cover normal everyday living necessities, you are buried in debt. This is what happens when spending is out of control with complete disregard to a personal budget. The emotional stress can become overwhelming. Getting deeply into debt is easy and the road to recovery requires a new found commitment to personal financial management. Follow these tips to begin a journey to a debt-free, stress-free lifestyle.

1. You need a plan of action. Buckle up. Grab that stack of unopened bills, open them and make a detailed list. Getting them current is the initial priority and paying them off is the ultimate priority.

2. Keep one credit card. This is the one with the lowest interest rate. Don't use it unless you absolutely need to. Cut the others up into little pieces.

3. Don't Create Any New Debt. No new credit cards. For those that have out of control spending, carrying a new credit card is like carrying a poisonous snake.

4. Slap yourself silly if you even think of getting a "Payday Loan".

5. Pay cash for absolute needs. Don't use debit cards. They are too tempting and will lead to frivolous purchases of things you do not really need.

6. No frivolous unnecessary spending. If you do not absolutely need it, then don't buy it. Until your financial life is in order, don't eat out, don't call for pizza delivery. No, you don't need spandex to jog the neighborhood. Unless absolutely necessary, do not buy new clothes. All the money you save is best applied to retiring debt.

7. Don't ignore your creditors. Talk to them now. Not later. Most creditors will work with you if you openly communicate with them. They do not want to go through the cost of collection or write off debts if they can make some reasonable concessions. Ask them if payments can be waived for a short duration. See if they will lower the interest rate so principle can be retired more quickly. If you get told no, ask to speak with the next level of management. If you are so financially strapped, you are considering bankruptcy, tell them so which may motivate them to make concessions which are less costly than a complete write-off. Always be friendly and not threatening. You will get better results than if you are not "nasty".

8. Use negotiated savings to pay off debt. When a creditor makes a concession that save you money, it's not not time to celebrate by buying video games or a new piece of furniture. Put excess cash towards other debt.

9. Laddering debt payoff. Since the strategy is eliminating debt, target the debts that carry the highest interest rates. Reducing the debt principle will result in interest savings which can in turn be used to retire even more debt. Once the higher interest debt is paid off, target the next highest interest rate obligation. If you have several credit cards and you payoff a high interest credit card, then close that account. If you keep a credit card, keep the one that applies the lowest interest.

10. Once you've got your debt under control. Once you've paid off the credit card you will be keeping, only use it for emergency purchases and for definite needs such as groceries, gasoline, medical bills and etcetera. Pay the balance due upon receipt of the bill. That way you avoid interest altogether and you will always have a zero balance. Do not use a credit card for "fun" or non-essential needs such as televisions, video games, furniture and etc.

11. If you don't need it, don't charge it. Never buy non-essential items or services unless all monthly debt payments are current and you have enough savings to cover emergencies such as unexpected major car repairs. Always pay cash for non-essentials. If you don't have the cash, then don't buy it. That way, you never incur unnecessary debt.

12. Get frugal. Life is to be enjoyed, so reward yourself with pleasurable dining when it does not adversely effect not being bills on time which ruins credit scores. But it's wise to be frugal and prudent to become debt free. Use coupons, go to cheaper matinee movies instead of prime time shows. Combine multiple stops in single trips to save on gas, shop at outlet centers and things of that nature. There's a distinct difference between being frugal and being cheap.

Once You're Debt Free, Stay Debt Free.

Life will be a whole lot more fun without financial stress. Get motivated. Create a budget to help you practice good financial management, Involve the whole family in good financial planning and stay on track to avoid ever again becoming buried in excess debt. You may want to consider consolidating debt into a single payment so you can focus on eliminating just a single debt versus several debts. Think wiser and more prudent.

Also read "Digging Out of Credit Card Debt".
Find a Debt Consolidation Lender.