Three Steps to Getting Rid of Debt

By Ashley Russell on March 16, 2011

1. Stop adding debt. It is hard to pay off our debt if you just continue adding more to it. Be sure to close unneeded accounts that you have paid off, have accounts frozen, or hide your cards from yourself. You will never be able to dig yourself out of the pile of debt you have created if you add to the pile every time you dig yourself out a little.

2. Change your spending habits. Many people shop when they are bored to pass the time. This compulsive shopping is not going to help you when you are in debt. If you find yourself going shopping in your free time try to avoid having idle time. Plan your days out so that you do not have spare time to make trips to the mall. Start making a list of things you will get for when you do need to go shopping. Then stick to the list and buy only the things you came to get. Finally, examine your spending habits to see what can be cut out. Spending on unnecessary things can quickly add up over time. It is acceptable to indulge yourself when you feel the need but you should not overindulge. Embrace a more frugal daily lifestyle until you can take control of your debt.

3. Increase income. There are many ways that you can improve your income. First, look for ways in your current job, such as increasing commission, working extra hours, or ask about the possibility of taking on more work in order to get a raise. Secondly, looks for new sources of income. There are often studies done on and around college campuses, freelance journalism opportunities, handy work or yard work, and other small, and possibly, short-term jobs. Try to think of any skills that you possess that you can use to bring in extra income.

There is no one right answer for getting rid of debt. Learning to manage your money and limit your spending, or spending more wisely, can put you on your way to cutting down your debt. If you have more debt than you can currently afford, then you should look for ways to make more money to combat this problem. Every situation is different so be sure to look at all of the alternatives that could be beneficial to you.