Ten important steps to getting out and staying out of debt:

1. If you are in credit card trouble, you must cut up all of your credit cards now, with the possible exception of one card for emergencies; do not carry this card in your wallet, however. Say ‘No’ to more debt!

2. You must pay more than the minimum payment every month, as much more as you possibly can. If you have a credit card debt of $5000 at 18 percent interest and all you do is pay the minimum each month it will take you over 30 years …to pay it off.

3. You must pay off the credit card with the highest interest rate first, and the rest in descending order. Get my budget template and start budgeting.

4. You must negotiate for yourself the best interest rates, even if it means switching credit cards every six months. Bankrate.com is a great resource for the best cards with balance transfers offers.

5. You must understand everything about how your credit card works–all fees, how the company charges you, all about the so-called grace period, everything. Remember it’s YOUR debt so use a good budget template to manage it.

6. You must honor all your debts equally–whether it’s the money you owe Visa, or the money you owe your family or friends.

7. After you pay off one credit card, you must apply the money you have been paying that particular company to paying off another credit card. Stick to your budget!

8. If you doubt that you can do this yourself, you must get in touch with a wonderful non-profit agency known as the Consumer Credit Counselling Service; they can be reached by calling 1-800-388-2227. They will help you budget and consolidate your debt.

9. You must learn why you got in trouble with debt and learn how to change your money beliefs. Because this can and will happen again.

10. After your debts have all been paid off, you are to apply the money you were paying all those months toward creating your financial freedom. Keep a budget and Save Save Save!

Tammy Lally, The Money Coach, To budgeting and staying out of debt.
“Because you can’t fix money problems with money”

MONEY QUIZ