How Do I Get Rid Of Debt

By Kaz Mills - Jul 23, 2009

Can you remember back to the times when you had no debt and life was fantastic, no late payment fees, no harassing phone calls, not afraid of the post dropping through the door and the best of all you had money to spend and I don't mean the use of a credit card I mean real cash money. It was great going out with friends and you could buy a meal if you wanted or drinks without having to think if you could afford it or not.

How did your life suddenly change from that point? Probably because you started living above your means, you started spending more than you were earning, not for one minute did you envisage you would be debating "how do I get rid of debt", debt was something which did not register in your life at all.

The institutions who have helped you to spend more than you earn is the credit card and loan companies because suddenly you no longer have to pay with cash, the little plastic card has taken over and when using a credit card we really do not feel we are spending our hard earned cash. This stops us from feeling guilty when buying items which we cannot afford.

Lending institutions make massive amounts of profit from us the consumer and they like nothing more than to add further charges for late payments. Always look at the interest a card or loan company charge because some are excessive.

You are in debt and your credit cards are maxed out and you cannot apply for any more loans because you really have a tough time making the payments on what you already have, so you are thinking "how do I get rid of debt." You might be looking at the very top of your debt mountain and thinking it is unattainable but this is not true.

How do I get rid of debt? The answer to this is do not look at the whole mountain but look as if you are going to take one step at a time up the mountain until you reach the top.

   1. Stop using your credit cards, cut them up except for one for an emergency.

   2. Stop spending on items you do not need, it is not necessary for you to buy a newspaper/magazine/cup of coffee/chocolate every day.

   3. Focus on the credit card with the highest interest charge, this is the one you pay off first.

   4. Take an amount of money each week and put it away for payment on the credit card. Pay the minimum payment and what you have saved as well. This helps to pay the credit card off quicker.

This is the basic outline of what you have to do to get rid of your mountain of debt. It is achievable but there is no quick fix to your situation you did not get into debt in a few days and you will not get out of debt in a few days.

You only have to follow a simple program to eliminate YOUR DEBT and you are the only person who can make this happen. Stop asking yourself "how do I get rid of debt" and take the first small step.