Get out of debt

Pull up a chair and have a seat – Welcome to the ever growing group of those in debt. The biggest challenge ahead of you is to dig yourself out of the debt you have accumulated. Buy how?

 Depending on your level of debt the options are usually as follows:

 Consolidate all of it into one loan

Join a debt management program

File bankruptcy

Do nothing….

Keep paying on the cards as long as it takes

Make minimum payments and keep spending

Make an effective DIY plan

The more popular solutions, such as consolidation loans and debt management, are the ones that put your money in other people’s pocket.  Well that sounds a bit backwards.  If I want to become debt free it shouldn’t involve spending more money.

I think a great viable option is a DIY system.  This can be broken down in to five steps that look a little something like this:


1. Address your spending habits, what put you in this position

2. Know what your options are inside and out – and why they are not for you.

3. Know your specific situation

4. Minimize payments going out and Maximize income.

5. Form a clear system and put it into action.


Once have followed the first five stepsyou can then develop a “snowball” plan.  That is a system that gains momentum as you perform it.

Start with one card.  Pay as much to this card as you can afford to while continuing to pay the minimum payments on the other cards you may hold.  Once this card is completely paid down you can take what you were putting to the first card, and add it to the minimum you had been paying to the second.  Once the second is paid off you will take the money paid to the first and second along with the minimum of the third and pay on it until it is gone and so on until everything is paid off.  You can see how taking what you were paying on the first card and applying that whole payment to the second card along with paying the minimum on that second card creates a true snowball effect. 

The debt will not disappear overnight but once you have the first card paid off, things will begin to “snowball” and move a lot quicker.

It’s your money, it’s your life – if you want to truly own them both then you have to take control – not give it over to someone else. Control or be controlled, the choice is yours.