My Get-Out-of-Debt Plan

Debt is an awful thing, but most people have some form of debt, be it a credit card debt, student loan to pay off, or even a mortgage. My debt is my mortgage and my credit card bill that is a result of spending a little bit too much money over Christmas.

In 2011 I plan to get out of credit card debt because I no longer want it to hold me back. I want my freedom back. Of course saying I am going to get out of debt and doing it are two different things. So, to ensure I get out of debt and stay out of debt I am going to create a plan of action. Within this plan of action I will write down why I want to get out of debt, and how I will achieve this.

Having a plan in black and white, that I can refer to, will help me stick to my goal and achieve it in 2011. Getting out of debt will not be easy but I plan to do it by cutting down on my spending and expenses and upping my income along the way. I plan to get out debt by saving more money to pay of my bill, and by not spending money on unnecessary items.

Now, this get out of debt plan of action sounds all very good and well but something's holding me back, and it is something that has held me back before. This thing is called denial. I have always let denial get the better of me and my debt almost to the point of letting my debt spiral out of control. However now I know where the problem lies I am going to address it head on. I am going to work out why I spend so much and start from there. The way I see it, is that if I get to the root of the problem I can start working on a solution.

Of course no two debts are the same and everyone is different. However everyone can get out of debt, even you, if you just put your mind to it. I suggest starting off by finding out how much debt you have. Once you know how much you owe you can then work on a plan of action. Within your plan of action you can cover how you will save money and how you will increase your income, be it by taking on overtime, starting a business or getting a second job.

More from this contributor:
Financially planning for your future
Managing your finances
How to manage your money