Debt affects millions of people today.
Bankruptcy's are on the rise and more and more people are struggling to stay afloat.
For those that don't manage to avoid bankruptcy, the effects can stay with them for many years.
The stigma that was once attached to it has lessened but it can and does still cause many difficulties for its victims.
For example, It can cause you trouble when you apply for a job because employers an now credit check you.
For some, it may be their only option but for many, there may still remain a chance if they take action.
Consumers in general now carry a huge amount of revolving debt on credit cards and 47% of people who don't pay off the full balance each month pay only the minimum balance, a terrible strategy for paying off your credit cards and a very expensive one.
It is part of our culture and what seems to be our consumer ethos, to buy now and pay later.
We feel that we are owed what we want and should have it without working for it.
The problem is that we end up having to work for it anyway and even harder than if we had done it first! It is time to take a stand and make a difference in your life and to help you do that, here are the 7 top tips to help you become debt free.
Tip 1.
Write down all of your debts.
It sounds simple, but you'd be amazed at the difference that this one simple step can make.
Make a list of all of your debts, list the amount, who it is owed to and the monthly repayments.
This can be hard as it is difficult to face up to this problem, especially if you have been hiding from it for some time.
It is the most important step though so get started now.
Tip 2.
Decide what your most important debts are.
You may want to pay off a few small balances first to get some small wins.
Otherwise, you should pay everything that you can to the debt with the highest interest while paying the minimum to the rest.
When you have paid that off, you should take all of that amount and add it to your payments for the debt with the next highest interest and so on.
Tip 3.
Cut up those credit cards! Don't just put your credit cards away somewhere and defiantly not in your wallet.
Cut them up so that you won't be tempted to use them.
When you pay each one off, contact the company and cancel the account.
Don't fall back into the same trap! Tip 4.
Examine your credit report.
Your credit report shows you your payment history.
You can get a copy cheaply from many places online.
You should check it for any errors that could harm your credit rating and write to the companies concerned to have them corrected.
This will ensure that your credit problems do not cause you trouble into the future.
Tip 5.
Make a budget and stick to it.
A budget can be the single most important step that you can take to not only get out of debt but also to ensure that you start to prosper financially, no matter where you are now.
It is actually pretty easy to do.
You can find easy, free instructions on my website on putting your budget together.
Tip 6.
Don't switch one debt for a worse one! If you are a home owner, it may be tempting to take out a loan secured on it to pay off your credit cards.
This can backfire badly though if you fail to keep up the repayments because now your creditors can take your home away from you.
If you are considering this route, you should seek professional help from someone who does not stand to profit from you first.
Tip 7.
Get help.
There are many sources of free help out there for people in your situation.
They can advise you on your rights and the options open to you.
Also, it helps to talk to someone impartial and to know that you are not alone and that there is always a way out!