Go from Debt to Wealth in Seven Steps

With many foreclosures in the real estate market and more people living off of credit cards, it's pretty safe to say that we're living in a financial crisis. According to the US Census bureau, there were approximately 164 million credit card holders in the U.S. in 2003 and that number is projected to increase to 176 million by 2008. Unfortunately, many of us were not taught by either the school system or our parents on how to manage our money So many of us are stuck and paralyzed by fear when we find ourselves drowning in debt and yes, many of us are indeed over our heads in debt. What can you do to take yourself from debt to wealth?

Step #1 - Don't focus on your debt. The first step in going from debt to wealth is to stop focusing on your debt. Worrying, stressing and staying up all night mulling over your debt isn't going to get you anywhere but the hospital for health problems! Instead, focus on ways to increase your income. Perhaps you could clear all of that clutter that has accumulated in your garage and closets and have a garage sale. You could sell some of that stuff on eBay as well. You'd be surprised at how many people would want an old pair of dusty radio speakers!

Step #2 - Negotiate with your creditors to decrease interest rates. If you've been good about paying your bills on time, you should think about calling your credit card companies and seeing if they can decrease your interest rates. Most companies are willing to do this if you tell them that you've found another company that can give you better rates.

Step #3 - Create a plan to get out of debt. It's not enough to say, "I want to go from debt to wealth." You need to sit down and write out your goals with a timeline of accomplishing those money goals. Start off by paying off your smaller debts. That will build the momentum and increase your confidence to begin paying off your larger debts.

Step #4 - Don't feel like you have to keep up with the "Joneses". We live in a society that likes "bigger and better" or "new and shiny". You don't have to have the newest BMW model or that latest designer handbag. Always keep in mind your mantra, "Debt to wealth" when you go shopping. Tattoo it on your arm if you have to as a reminder of your goal. Better yet, if you can, stay away from the mall or places where you'll be tempted to spend.

Step #5 - Cut up the credit cards and keep only 1 or 2 for emergencies. This is much easier said than done, I know, but if you truly want to cut your debt, then this step must be done. No ifs, ands, or buts about it. If you can't do it, have your spouse, kids, or a good friend do it for you. Just visualize how much happier you will be once that debt is paid off!

Step #6 - Start a business. What better way to go from debt to wealth than to start a business! More and more people are starting online businesses to supplement their full-time income. Contrary to popular belief, it doesn't cost anything to start an online business. If starting an online business gets you excited, I recommend visiting www.onlinebizresources.info for information on how to get started.

Step #7 - Invest in the stock market or real estate. Start building your wealth by making sound money investments that fit your personality. The stock market and real estate are great venues to park your cash for long-term investing. Let's face it, a savings account in a bank that gives you 2-3% on your money is not going to make you rich!

Going from debt to wealth can be quite a challenge, but it's certainly a journey worth taking!