Are you in debt and do you feel like you‘ll never get out of it? No matter how you feel or how big your debt is, there is always a solution for you.

Here is a simple plan that if followed, along with minimizing or banning completely your credit card use, will help you get out of debt.

This process might take you anywhere from a few months to several years to complete, depending on your amount of debt, so it's important that you're patient and honest with yourself.

Here's a simple step-by-step process for what you can do:

  1. Be honest with yourself. Go through your statements and figure out how much money you owe and what interest rates you are being charged for borrowing that money.
  2. Write down in a column all that you owe starting at the top of the list with the balance that you pay the highest interest rate on and descending accordingly, until the last thing on your list is the balance you owe with the lowest interest rate.
  3. Add other columns to your list, stating who you are borrowing that money from, the interest rate you must pay back, the minimum monthly payment and the phone number of those you owe money to. Remember to state each company and person you owe money to without excluding anyone; you must include your credit card debt, your student loans and even a friend or your mom if you are borrowing money from them.
  4. If you are late in making any of the payments, call your creditors and let them know, if you know when you'll have the money to pay them back, tell them, and try to negotiate a lower interest rate for your debts with higher interest rates.
  5. Figure out how much money you can put aside each month to pay for the balances you owe, let's say, $400. Now, add $10 to each of the minimum payments and add up what all those minimum payments would amount to each month, in this case, let's say that the addition of all your minimum payments is $250. Important tip! It's essential to pay more than just the minimum balance due on your credit card (Read: Credit Cards: The Dangers Of Minimum Repayments).
  6. Subtract the money you must pay each month from the money you put aside to pay each month, in this case $400-$250=$150. Use this $150 toward the balance you owe with the highest interest rate until it's paid off. Once the balance with the highest interest is paid off, continue putting aside each month the same amount of money, in this case $400, towards getting rid of your debt. Now that your debt with the highest interest rate is paid off, use that money to pay for the loan with the next highest interest rate until that one is paid off too, and so on.

By having everything written down and by following this structured plan, first of all, you're acknowledging your debt, seeing things much more clearly, and secondly you're doing something about it that will help you get rid of your debt in the long run.

Slowly but surely, you will get out of debt if you stick to your plan!

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