How to Get Out of Debt: Ideas to Help Discipline Yourself

With oil going through the roof and the economy going south, too, now is the time to begin your climb out of debt.

"These times are too difficult to do this," you say. For some that is true. However, common sense tells you that it could be the right time. With things costing more, you are going to be more frugal in your spending. You won't travel as much. You won't spend as much. You will be very selective in what you buy. Use the extra savings to pay down on your debt.

There are three things to do that will really help. These three things won't be easy but, it is a sure way to reduce or eliminate your debt. However, before you start, do two things. First put some emergency money away. This will differ for everyone according to their budget. Some will put away a few hundred dollars and some as much as $1500. This fund is just that, for emergencies only. The second thing to do is make a list of all your bills with the highest interest bills being first. Some will prefer to do the smaller bills first because you can pay them off quicker. Both ways will work. However, getting rid of the higher interest bills will save you money in the long run. Whichever bill that is on the top, is the one you attack first

Now here are the three steps to follow.

1. Stop acquiring new debt. No more easy monthly payments. If you don't have the cash, don't buy it. Go with a substitute. For example, your television goes out. Go to sale barn or auction and buy one. Do not add a monthly payment. Cut up your credit cards. If you must keep a card, keep the one with the lowest interest rate. Don't rationalize. Just destroy them.

2. Get rid of recurring payments. These are things like that $99 cable TV payment. If you can't get rid of it, try to reduce it. You can do this with bills like your water bill, power bill, phone bill, and so on. Do you have a cellphone contract. Get rid of it. Go with a pay as you go card. If you call your spouse to let them know that you are on your way home. Set up a code. Let the phone ring once and hang up quickly. One ring you are on time. Two rings, you will be late.

Now I realize that there are some things that you have to have. Medicine would be one this recurring. However, you would be surprised at the luxuries you could eliminate and save money.

3. Which ever bill is at the top of your list, throw money at it quickly. The best way is to send an extra payment one or two days after you sent a required payment. This way interest won't accrue so quickly on the balance. Yes you can send extra with your original if you prefer. However, many times you just have it come out of your banking account. That would be whatever is do for the payment. With postage being so high, for many this is a good way to go. Be vicious and keep after that one bill only. Don't worry about the other bills right now. Just keep paying the minimum on them until this one bill is gone.

Once that first bill is gone, whenever that might be, use the extra money to start paying on the next bill. In many cases, it will amount to a double payment. It will go quicker. When that one is gone, start on the third bill. Use the money that you would have used on the first two bills. This is now like a triple payment. You have your debt snowball rolling.

It will be awful slow at first but, it will gather speed after the first two bills are gone. You will be tempted to spend your extra money on silly things but, don't. Just keep focused on paying down your debt.

Other helpful ideas; Get rid of those extra movie channels. Mow your own grass, if you are able to. Change your own automobile oil. Turn off the electricity everywhere you can. Look for deals on groceries. Take showers instead of a bath. If you must eat out, try a mom and pop restaurant. You will be helping them, it could be cheaper. More variety in food. Speaking of food, take your lunch to work.

Get a hobby. This will help channel your interests in another direction. Maybe you can find a hobby that will generate some small amounts of cash for you. This will also keep your mind off your debts.

Lastly, keep giving to your church. Do not deviate from your giving. Your church is always there for you. so you have to be there for it as well. What? You don't belong to a church? Well then give a small amount to a worthy organization. St. Jude's is for children with cancer. It is a great one to give to. Give what you can.

Be disciplined and stick to the plan. Remember, it will be so slow at first that you will think that you are moving like a turtle and you are. As time goes by, things will pick up. Good Luck.