We are in a society that is driven by handing over a piece of plastic to pay for everything. It is this trend that has probably made their be a great increase in the searches for ways to get rid of debt. Our great grandparents and possibly even grandparents did not have even half the financial problems that we do now. Their biggest forms of debt were usually their mortgage and car loans. Now, people have debt for everything from store credit cards to lines of credit that they really do not know what they used it for.


It is this excessive amount of money that is owed that is leading to bankruptcy and foreclosures. This is why we all need to take the steps immediately to get rid of debt. The way that we have been living for the years is what has lead us down the financial downward spiral. It is time to turn back the clock and start using the same techniques that are great grandparents did to get rid of debt.


Step One


You will need to create a budget that you can follow. The most important things about this step to get rid of debt is to use real time numbers. Do not estimate what you spend on items or bills. When people tend to estimate what they spend and even what they make a month, their numbers tend to be wrong. Get out the bills and your paychecks to make sure you use true numbers.


It is also a good idea to make sure that you are spending less then what you make each month. This is with including a savings plan and paying down debt. You do not want to cut it close each month with the money that is going out. If you want to get rid of debt, you are going to want to make sure that you have a cushion in your budget.


Step Two


Once you have created your budget for the month, break it down into weekly budgets for all of your necessities to get rid of debt. When you know what you are allowed or have available to spend each week, you will be more likely to stay on budget. Remember over spending and not paying attention to what you are spending money on by using plastic is the way that you accumulated the money that you owe. To get rid of debt, you need to know where every penny is going each month.


Step Three


Go to the bank at the beginning of the week and take out all of the cash that you will have to spend on your necessities according to your weekly budget. By taking out the cash that you need once a week and avoiding using your debit and credit cards, you will be saving money. You will not have to pay those ATM and other transaction fees for taking money out of your account multiple times.


Step Four


Create an envelope for each part of your weekly budget. You will put the amount that you have for each category into a labeled envelope. For example if you have $40 for transportation, you will put $40 into an envelope to pay for your transportation costs for the week. This way you will always have the money on hand that you have available to spend.


Step Five


Keep track of the cash that you spend from each envelope through out the week to get rid of debt. You can place receipts into the envelope for the money that you have taken out. It is also a good idea to keep a notebook where you can track your spending. This will keep you aware of your money and what you are doing with it. This is the key to using cash to get rid of debt.