How to Get Out of Debt - Getting Started

The unfortunate truth is that there are no real quick fixes when it comes to eliminating excess debt. This is especially true if you are interested in preserving your credit rating so that you can make purchases in the future. Although many individuals turn bankruptcy, it can be almost impossible to get a loan for a car or home, let alone small loans or credit cards, after making this decision. The truth is that comprehensive debt solutions require time and persistence if you are going to make them work and enjoy the long-term benefits that come from living free of debt.

When you are ready to get serious about getting out of debt, the first thing that you need to do is determine how much debt you actually have. This means that you must do more than just determine what the current balance is on your cards and loans. You should also look at the interest rate that is being charged that you will have a better idea what your debt is actually costing you now and what it will cost a few months from now. If you are only making the minimum payments on your obligations, you can expect your debt to rise substantially.

The next step is to closely monitor your spending so that it is easier to identify extra money that can be used to pay down the debt that you have. Unfortunately, this step also means being willing to make a few sacrifices. If you are spending your money buying fancy coffee drinks every morning, eating out for lunch on a regular basis, making regular trips to the movie theater or any of a variety of other unnecessary expenditures, you will need to cut back significantly so that you can use this money anymore responsible way.

Many individuals make the mistake of thinking that small steps towards debt reduction are not worth the effort. This actually could not be further from the truth. Even by setting aside as little as $10 a day towards your debt can help you pay off a credit card with a balance of as much as $8000 in as little as three years. Small changes can have an enormous impact on your debt. Because you have to start somewhere, it is often easier to make small changes before jumping right in to huge adjustments in the way that you live your life on a day to day basis.