Do you have debt you need to get rid of?  Who doesn't?  It's too bad that so many people have debt.  Some people have a little and others have much, much more.  Either way, those with any amount of debt are in a much undesirable situation.  How do you get out?

How do you get Rid of Debt?

It is possible to get rid of debt.  If you are desperate, you may be tempted to declare bankruptcy.  I suggest avoiding bankruptcy at all costs.  It is not worth it in the long run.

You won't get anywhere without a plan.  This is going to be one of the most important steps you will take towards getting rid of debt.  You need to make this plan as detailed as you can so that you don't leave anything out.  Thoroughness and completeness is what is necessary for this plan.

Organize your debt.  Figure out how much you owe everyone of the creditors that you owe money to.  Determine the minimum payments of each credit card and loan payment.  Figure out how much your debt will go up each month in interest.

Now you need a plan to pay off this debt and limit its growth.  Come up with a time line.  When do you want to have this debt paid off by?  How many months, years, etc. will you give yourself?

Don't be afraid to be ambitious.  In fact, be as ambitious as possible.  Don't take this lightly.  You want to have this paid as soon as possible to get rid of this burden and to minimize the amount of money you are charged in interest.  If you have credit card debt or other consumer debt with very high interest rates, you know how fast interest can pile up.

Now you need to make a detailed plan to get rid of debt and stay debt free.  You know how much money you need to pay off and you know how much time you have until you want to have it paid off.  Now you need to use this information to figure out how much you need to put towards paying off the debt each month, or better yet, each paycheck.

Remember, you will need to keep in mind that your money will continue to collect interest.  Factor this in as best you can into your savings goals.  Also, plan out what debts you are going to pay off first.  Pay off the debt with the highest interest rate first and continue in that direction in order to minimize interest collecting.

You will most likely need to seriously downgrade your lifestyle while you work to get rid of debt.  It might seem extreme, but if you want this paid off as soon as possible, and you do, you will need to.  This may mean any of the following:

• Eliminate eating out, fast food, movies, or any other food you don't need to survive or entertainment that costs money.
• Cut out cable, cell phones, internet access, etc. or at least cut out cable, get a pay-as-you-go phone and use it sparingly, and get dial-up cheap or use the library.
• Move into an apartment that is much cheaper than where you currently live.  If you are able to, move in with a close family member or friend until you are able to pay off debt.

Hopefully you get the drift.  You are cutting out everything you don't need to survive and only keeping what is absolutely necessary.  This may sound extreme, but it could be the difference between paying off debt in a few months versus a few years.

Step 4:  Follow your Plan and Budget

If you don't follow your plan and budget, you're going to get nowhere.  You'll fall flat on your face and you debt will continue to grow. If it is completely unsustainable, adjust it a little, but don't change it completely where you'll add years of time where you'll remain in debt.

Step 5:  Work really Hard to Follow your Plan and Budget

I can't tell you enough how important it is to work hard and follow your plan and budget. This is absolutely the most important step to get rid of debt.  Even the best plan and budget will mean nothing if you don't follow it.

Step 6:  Enjoy your Debt-Free Life and a Whole New Lifestyle

Before you know it, you'll be debt free and you'll be living a whole new lifestyle.  You can bring back some of the luxuries you gave up and realize that some you would rather not continue to spend the money on.  You'll have extra money to start putting towards important financial goals such as an emergency fund, house, car, retirement, college, etc. 

Once you get rid of debt, you'll have a huge weight off your shoulders and feel so amazing!

You will need to build a budget if you want to consistently make these periodic savings goals.  This is going to take some work, but once you have it done, it should be easy enough. 

First, add up all your income and then all your expenses for a month.  Income may only include your weekly or biweekly checks from your full time job, and that's fine.  You just need a good number.  Make sure it is after tax that you actually receive in your check.

Your expenses should include absolutely everything you spend your money on from the most obvious to the most minute.  You should include your rent or mortgage payments as well as the cup of coffee or pack of gum you buy every so often.  You need to add it all.

Subtract your expenses from your income.  This is what you are able to save towards your goal each month.  If it is nowhere near what you need, maybe it's even a negative number, you have a lot of work to do.  Before we get any further, let me make it clear that from now on you will not charge a single dime to a credit card or take out anymore loans.  Credit is off limits from now on.

Now you need to do some fiddling.  Figure out what expenses could cut out or cut down on to devise a budget.  Write out how much you are allowed to spend on each item or category of spending.