Choosing to Get Out of Debt with Personal Finance Budgeting and Home Budgeting

Getting out of credit card debt has been presented as an art of late. However, the way to get out of debt is very, well, methodical. There are basic steps for eliminating debt and anyone faced with this dilemma will give you similar advice. These are the desired steps:

1. List all of your credit card debts including balances, interest rates and minimum payments due monthly.
2. List all of your necessary monthly expenses: rent/mortgage, electricity/heat/water and/or gas, car payment, gas for automobile, food.
3. Take note of all of your "additional" expenses (delivered lunches, manicures, excessive shopping) for at least 30 days so that you can recognize where you can reduce or cut out these expenses altogether.
4. Reduce and cut out those unnecessary expenses.
5. First, pay the credit card debt with the highest interest rate and the lowest amount due until it is paid off. If you cannot afford to pay more than the minimum o­n the remaining cards, then pay o­nly the minimum. Pay all debts o­n time to avoid costly penalty fees!
6. Once the first card is paid off, attack the next card with the highest interest rate and lowest amount due with the money previously used for the first paid-off debt.
7. Keep “paying down the line” until all of your credit card balances reach zero.
8. Pay with cash at all times. You will spend less when you realize how quickly real money leaves your wallet.
9. Avoid new debt at all costs, keep the credit cards at home or if you have little discipline, cut them up.
10. Pay some amount to yourself in a separate savings account, no matter how small until you reach the desired 10-20% of your income.
11. Once your savings/emergency fund reaches the amount beyond what you would need to pay your necessary expenses for a period of 6 months should you lose your job and/or become ill or both, seek out some sort of investment/retirement advice o­n the Web, at your local library or from a professional.