Up to Your Eyeballs in Debt? Get Help With These 5 Steps

Personal debt has become a real problem in our society.
Whether you're poor, rich or middle-class, your debt level
can make you feel like giving up on your dreams of
financial independence comfortable living. Do you want to
get out of this situation? The five helpful hints listed
below will help. Guaranteed.

The following steps are really quite easy. All it takes
is your commitment. You can do it. Imagine the feeling of
relief and happiness when the debt has been lifted from your
shoulders. It will all be worthwhile. Ready to get stated?
Let's go.

Step #1. Work out your current financial position.
It may have been a while since you took stock of your
financial position. Could this be the reason you're in a
spot of bother now? You need to consider your financial
position now. Unless you know your starting numbers you
won't know what to fix. Correct?
Just get a paper and pen and your latest credit card
statements and review the situation, fearlessly. List out
all your debts and their interest rates and the minimum
monthly repayments.
Don't get too concerned about how much is owed. It's been
often reported that anyone can pay off all their debts
within 5-7 years, this includes your mortgage. That means
you too.

Step #2 Stop living beyond your means - NOW.
You have to stop the rot, and this is the first thing to
do. Review your living expenses and do without those things
you can't afford. Also, destroy all the credit cards except
one for emergencies and promise yourself you'll only
spend what you can afford from the cash coming in.

Step #3. Put aside some money each payday for those debts.
Once you have understood Step #2, the next step is
to think of some ways to put save some money every week or
month, to start paying off those debts. Pay as much as you
can afford. Paying down the highest interest debt
first is the best use of your money. If there are credit
cards with the same intererst cost then pay off the credit
card with the smallest balance first. This will give you the
incentive to keep going and give you a psychological boost.

Step #4. Build a Savings Nest egg.
Once you have paid down those credit cards you can
think about putting some funds aside to start building
your savings nest egg. Your money grows quickly if you add
to the balance each payday and don't touch it. If there
comes a time when you really need to buy some furniture or
a car then you will have a substantial deposit or the total
in the bank already.

Step #5. Reduce That Mortgage.
This item can be left till last since the value of the
asset is increasing - unlike your car, TV, Home Theater,
furniture or boat. Just by adding a few dollars a month or
fortnight to your mortgage repayments, you can
substantially reduce the period of your mortgage.

These a just a few helpful hints to help you get back on
track financially. The main thing here is to work on
canceling that credit card debt. Once that is under
control, use those funds to build your savings nest egg and
pay down the mortgage. That's how the plan works.
So, why not get those documents out, do the math, make the
commitment and start on your road to financial freedom.

Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. You can also click here for your FREE Mini-Budget.