Using the right method to help you get out of debt can make all the difference in the world.
A critical part of whatever method you choose is setting up an effective budget.
One common method of budgeting that has been around for a long time is referred to as the envelope method.
To begin, write down a list of all of your typical expenses.
These expenses are what you would normally purchase with a credit card or debit card.
Try to make your list so that has several categories such as entertainment, eating out, personal grooming, or filling up at the gas station.
Then you will need to take out an envelope for each category and label them accordingly.
After you finish your list, figure up how much money you will spend in each category during a one week, two week, or month long period.
A good rule of thumb is to just use the figures based on two weeks as a majority of people are paid every other week.
Put the amount of cash that you totaled up for each category in its labeled envelope.
If you don't have any money left in one of your envelopes before the two weeks is up, then too bad.
You will have to learn to survive without until your next pay check.
This holds you accountable for how much money you spend every pay period unlike when you purchase items with your credit cards or your debit card.
Another benefit is that you are unable to take money from one of your other categories once you have exhausted your money like you can by purchasing items with a debit card or your credit cards.
This strategy should make you aware of the fact that you have spent more money than your budget allowed.
Then you will be faced with a decision to either increase the amount of your budget, or learn to change your lifestyle to live within your means until you no longer have any debts.
You should now know why the envelope method has become so popular.
It's easy and it gets the job done.
Give this method a try and learn what it means to be debt free.