In order to get out of debt you first need to get your finances organized. You have to take inventory how much money you bring home and how much money you spend on monthly bills, groceries and gas. Until you know this for a fact, you will never be able to get out of debt.
Step 1: First things first check out daveramsey.com and print up his budget forms so you make order of the mess of bills in your life. The quickie budget alone will take you from savings to expenses including creditors, housing costs, transportation costs, utility costs and more.
Step 2: Fill out Daves monthly cash flow plan. This is good because you can stop kidding yourself that you have more money than you really do. Reality will hit you really hard here. You might barely have enough money in your pocket to do the grocery shopping. That’s right, you have to cut your clothing and entertainment allowance to become debt free. Becoming debt free is a huge commitment and may include boredom.
Step 3: Stick to it. Don’t let you wants get in the way of your needs. That is how you got into this situation in the first place. Like I said in the first post, you have to want to get out of debt to become debt free.
