A Straight Forward Guide to Getting Out of Debt

So, you probably clicked on this article because you are in debt and are sick of it! Well, good news, you are about to change your life. My husband and I have fallen into the same trap that the majority of Americans do, which is buy a new car, get a house, maybe a couple credit cards, but I have found out those are things we don't NEED we WANT those things. We as Americans need to get back to the basic principles and we would be much better off.

Okay, so first things first. Write down a list of all your debt ranging from smallest to largest (don't worry about interest rate). Then list your vehicles (smaller to larger payoff), then your home. Now, that is all your debt. Wow! Is probably what your thinking. How will I ever pay this off? Look at the big picture here. Wouldn't it be nice to not owe anyone a penny? To say that is our car, and really mean it? To have money in the bank for a change. Yes, there is light at the end of what seems like a long and scary tunnel, but my friends it is well worth the journey.

I want to let you know that you should buy the book The Total Money Makeover, by Dave Ramsey. This is where I am attaining my information. He covers a lot more things than I will in this article, it is a definite must buy! I have lent our book out to many people, and feel so good knowing their lives will change for the better.

I am going to brefily descibe the first part off all this. They are called Baby Steps in the book.

Number 1. Save $1000 emergency fund in the bank. ONLY FOR EMERGENCIES! Not Christmas, or a new dog house. An emergency.
Number 2. Start paying off your debt from the list you made a minute ago. Smallest to largest. We do this so you can see quick results and not give up. On this step, you pay the minimum on all credit cards except the smaller one, and put every dime you have towards that debt. Once one is gone, you move to two, but add all your paying on #1 , so you are paying double. Do this until it's all gone. May take a few months or a year, depends on how fast you are really into this makeover. Sell stuff you don't need, pick up a part time job, stop eating out so much, don't go to the movies, whatever it takes, DO IT!
Number 3. Pay off your car. If you take all you were paying on credit cards & every penny extra this should take anywhere from 1 to 2 years, but also, what you could do is sell the car & buy a nice used one. He talks more about this in the book.
Number 4. Save around $10,000 in the bank for emergencies.
Number 5. Pay off your house.

Okay, so there you go a quick and easy way to get out of debt once and for all. You really need to get the book though. It will help out a lot more, and explain things better in detail. My husband and I are doing this, we only have 1 credit card left. It's such a great feeling. In the next 2 years we will only owe on our house!

So get out there, get the book, and get started. You can do it. Don't conform to society and think every family has to be in debt and worry about bills, it is a hoax, and you can be the better (smaller) half of America.