When you’re burdened under a pile of bills, struggling to keep up with payments, the last thing you want to do is think about how much you owe.

You may try to make excuses that you need to focus on making more money, that you need to be doing real, productive work, rather than sitting at the kitchen table, adding up your debt.

But, if you ever want to dig your way out of debt, that’s exactly what you need to do.

Set aside an evening or a weekend, gather all your bills together and do it.  Turn off the TV, skip mowing the lawn, certainly don’t go shopping and stay home, grab a pen, some paper, a calculator and all your bills.  Then, sit down and work at it until you are finished.

In order to create a budget, in order to develop a debt reduction plan, you need to know the total of what you owe.  You need to know your minimum payments each month, your interest charges and your regular expenditures.  You need a full overview of your financial situation.

Avoiding this step will likely keep you in debt for many years to come, perhaps even lead to increasing your debt if you aren’t aware of your total costs of living and the total costs of your debt.

You can’t pin your hopes on winning the lottery or a sweepstakes to pay off your debt.  You need to make a plan and a budget and, in order to do that, you need to sit down and total up your debts.

The Bottom Line

A budget and debt payment plan is essential to reducing and paying off your debt.  Figuring out your total debt is a necessary step to do that.  Don’t put it off!  If you want to get serious about paying off your debt, do this as soon as possible!

Even if you have been making your credit card payments on schedule and paying more than the minimum, you may still want to know how long it is going to take you to pay it off.

This is where a debt calculator can come in handy.  There are a number available online.  Some can be used on the web, while others can be downloaded for use on your own computer.

In either case, you want to plug in accurate information.  The calculations will only be as good as the accuracy of the information you provide.  So, make sure you get all your bills and expenses added together, which you should have if you’ve previously worked out a budget.  You can give the debt calculator your current debt totals, the amount you currently pay, and it can tell you how long it will be before you have your debt paid off.

Be careful, the number may be a bit depressing!

However, you can use the debt calculator to fine tune your budget.  The more you can increase your payment, the faster you can get it paid off.  Of course, the debt calculator will not factor in any additional debt you take on.  So, if you want to stay on track with your budget and get the debt paid off by whatever date you’ve determined, you will need to not charge more purchases to your credit cards.

You can also call your credit card companies to see if you can negotiate lower rates.  This may also help you pay off your debt sooner.  If they refuse, or even if they accept, once you’ve established a track record of paying on time, making the minimum payment or more and getting the debt under control, you could try calling them again to negotiate better rates.  They may decline, but it doesn’t hurt to try.

The Bottom Line

A debt calculator isn’t going to magically solve your credit card debt problems.  But it can help you in figuring out what it will take to pay off that debt and what you can do to pay it off quicker.  The most important thing is to develop a plan and stick with it.  If you’ve not started, you should begin right away.  The sooner you get started, the sooner you can reach debt freedom.

It’s something that probably happens to everyone.  You’re walking through the store or browsing the web, and you come across something you absolutely must have and, despite your debt, you’re ready to grab your credit card and charge it!

Of course, you do not want to do that.  So, how do you resist that urge?

Some preparation is in order before you get to that point.

Visualize where you want to be in two years, five years or whenever you anticipate your debt being paid off.  You will have no debt hanging over your head.  You will not have the stress of struggling to pay your credit card bills.  When you see something you want to buy, you pay cash for it and you don’t need to worry about how long it will take you to pay off and how much it will actually end up costing you.

Think about how much less stress you will have.  Consider how happy you will be.  Form a strong mental image of yourself in this debt-free future.

Now, whenever you see something you really, really want, and are tempted to charge it on your debt-ridden credit card, think about that future you.  What will get you there?  Will buying this item get you there?  Likely not.  Will not buying this item and using that money to pay down your credit card get you there?  Yes, it will.

If you want to seize that future for yourself, you will have to resist buying (and charging!) things now that will not help you reach that goal.  Having this strong mental image of your future debt-free self will help you overcome that urge to spend now.

The Bottom Line

You have a choice: you can buy something now and end up paying for it over a long period of time, and put off having a debt-free future that much longer, or you can resist the temptation and pay down your credit card debt instead to stay on track with reaching your future with no credit card debt.  It’s easier to do this if you can visualize that future for yourself and bring that image into mind whenever you’re met with a desire to buy something now, for instant gratification.

So, you’re carrying credit card debt across multiple credit cards and you’re wondering how to manage that.  In addition to making the minimum payments on each, how do you spread the extra money to get your credit card debt paid off sooner?  Do you spread the money evenly across all your accounts or do you use some other method?

There are a couple schools of thought on this.  Let’s take a look at them.

Pay Off the Credit Card that’s Increasing Your Debt the Most

This is actually the best choice.  Usually it means paying off the credit card with the highest interest first, as that will save you in the long run because it is the one that is typically growing your debt the fastest.

Unless, of course, you only have a small amount of debt on it.

Don’t look at the interest rate alone.  Look at both the amount of debt and the interest rate.  A low interest rate on a high debt may be increasing your debt faster than a high interest rate on a low amount of debt.

Take a look at your credit card bills and see which one has the highest interest fees each month.  Which ever one is growing your debt the most each month is the one you want to prioritize.

Now, as you make your payments, keep paying attention to your bills.  As you get one debt paid down, you may find that another credit card becomes the leader in increasing your debt.  At that point, you may wish to switch your focus to that card in order to maximize the use of your money in paying down your debt.

Pay Off the Credit Card with the Smallest Balance

Some prefer to focus on paying off the credit card with the smallest balance first.  That provides a psychological victory in having paid off a debt, which will result in one less payment per month.  That will also allow you to take the payment you were making on that card and then apply it to another card to help snowball your debt reduction.

While this may provide a psychological victory, it may be more expensive in the long run,   if it slows down the rate at which you are paying off other cards which may be increasing your debt by more than paying off the smallest balance reduces it.

If you need a psychological victory, instead of celebrating paying off a particular credit card, you could celebrate reaching milestones in your debt reduction.  For example, you might make note of when your debt falls under $10,000.  Or when it falls under $5,000.  Or whatever intervals are meaningful to you, depending on your amount of debt and preferences.

On the other hand, it allows you to close that credit card account (or stick the card in a drawer somewhere where you will not use it) so you don’t continue to increase your debt on that card.

Again, you should do the math to see which most benefits you and also decide based on your determination to not add new charges to open accounts and, thus, increase your debt in spite of your payment plan.

The Bottom Line

While there are several methods of paying off your credit card debt, you shouldn’t base your choice on what someone else says worked for them.  Take a good look at your bills, check your interest rates, do the math, and select a method that will work best for you.

We’ve previously covered DIY Debt Reduction.  Many people worry about the efficacy of a do-it-yourself debt reduction plan and are hesitant to give it a try out of worry it may not help them at all.

But, what is important to remember is that the purpose of a DIY debt reduction plan is to provide you with a path to follow in order to obtain the fiscal discipline you will need to both payoff your debt and also stay out of debt once it is paid off.

Let’s briefly review the steps of a DIY Debt Reduction plan:

Step One: Write Down All of Your Expenses

As has been previously mentioned, write everything down.  Include all expenses, even those that are less frequent, such as quarterly or annual payments.  Spread the costs of those non-monthly payments over the 12-month period so you can be setting aside that amount of money each month until the bill comes.

Step Two: Write Down All of Your Income

Record all of your income, which, for most people, will be a weekly paycheck.  Then, calculate your monthly income.

Step Three: Do the Math

Subtract the amount of your monthly expenses from the amount of your monthly income.

From here, you will be able to adjust as needed.  If your expenses are more than your income, you will either need to cut expenses or increase income or a combination of the two.

Develop the Budget and Payment Plan

Once you have done the steps, you need to develop a budget and a plan.  Keep track of where every dollar you spend goes.  You want to be sure to set aside enough money each pay period to be able to pay your expenses that month.

Once you have developed your plan, you need to stick to that plan.  The benefit of sticking to your budget and payment plan is that you will be gaining the discipline to pay down debt and not incur new debt.  So, once your debt is paid off, you will have an easier time staying out of debt.

Note that, once you are out of debt, you shouldn’t scrap your budget and plan.  You can adjust it as needed, but stick with it.  So long as you stick within your budget, you can continue to stay out of debt.

After all, once you’re out of debt, you don’t want to find yourself back in that position again!

Get Your Priorities Straight

Prioritizing will be an important skill throughout the period you are paying down debt—and even afterward.

For example, if you see a new pair of shoes you like, do you really need them?  Or, do you really need the latest cool gadget that just came out?  Probably not.  So, is it better to spend $100 on new shoes or a neat gadget or to spend that $100 paying down debt?  After all, if you spend $100 now, how much additional will that cost you in interest fees (even late fees if you don’t have the money on time) on your debt?

Spending that $100 while you are in debt will end up costing you more than $100.  But, spending that $100 after you are debt free will mean it only costs you $100.  Which is the better bargain?

The Bottom Line

Can a do-it-yourself debt reduction plan really work?  Yes, it can.  But, it won’t work on its own.  You have to have the commitment and the determination to stick with it.  No plan will be of any value if you do not implement it and follow it.

If you read through any number of “credit card debt reduction” posts here, it will soon become akin to a broken record what the steps are to doing it.

So, let’s just very quickly review the basics.

Step 1: Figure Out How Much You Owe

Add up all your monthly expenses, including your minimum payments on your credit cards, mortgages, loans, and so forth.  Write this stuff down on a list or keep it in a spreadsheet on your computer.  That way, should you forget anything and a bill comes in the mail to remind you, you can add it to the list.  Also maintain a list of annual expenses, totalling in monthly expenses, so you have a total for your expenses for a total year.

Also keep a separate list of everything you owe.  For example, you might list your total credit card debt, the remainder of your mortgage debt, how much you owe on your car, and so on.

You want to be able to see, at a glance, how much money you spend monthly as well as how much money you owe in total.  As you pay stuff off, make adjustments so you always have a current, running total.

Step 2: Figure Out How Much You Have Incoming

In another list or spreadsheet, keep track of your income.  For most people, this will be the total of your paychecks for a month.

As with the first step, keep two lists.  Keep one with your regular income and another for additional income you may receive on a non-monthly basis—things such as quarterly interest payments, stock dividends, annuities, etc.

This will allow you to see your total monthly income as well as your total yearly income.

Step 3: Work Out a Payment Schedule

Subtract your monthly expenses from your monthly income.  If you have a positive number, you’re in good shape.  If this is your situation, take that extra money (the positive number) and figure out how to best use that money to pay down your debt.  By using that extra money, you can pay off your debts faster.  As debts get paid off, your monthly expenses will decrease as you no longer have to make payments on paid-off debts.  When that happens, you’ll have even more money to apply towards your other, remaining debt.

If, after subtracting monthly expenses from monthly income, you have a negative number, then subtract your annual expenses from your annual income.  If that gives you a positive number, then, at some point in the year, you are getting large payments that are offsetting your normal monthly losses.  If that’s the case, you need to take a closer look at those payments, and figure out how to better utilize them so as to cover for those months when you don’t have that additional income.

If both your monthly and annual expenses are more than your monthly and annual income, then you need to take a good hard look at your expenses to see what you can cut.  If you’ve already cut as much as you can, you may need to look at taking on an additional job or part-time work.  Other options are to call your debtors and see if you can negotiate lower interest rates or smaller payments to save you money that way.

The Bottom Line

Too many people just look at bills as they come in, sigh, and wonder how they will pay that, as they stick it in their “Bills To Pay” bin.  It’s not easy to do, and it can be discouraging at first, but writing everything down and developing a budget and a payment schedule can be a giant step towards managing your money and getting that debt paid off.

Being in debt is tough in ways beyond the debt itself.  While there are credit counseling and debt assistance organizations and companies out there who may be able to help, the fact is that many people are too embarrassed or protective of their privacy to use such services.

Fortunately, there are steps you can take on your own to develop a plan to reduce your debt.

Bear in mind that how you got in debt is important.  If you got into debt because you had bad spending habits, you need to address those habits.  You don’t want to get out of debt only to fall right back into your old spending habits and get into debt again.  So, any fiscal irresponsibility on your part is a problem you will need to fix to have any hope of a secure financial future.

On the other hand, if you got into debt due to circumstances beyond your control, such as unexpected medical or other expenses, while there is little you can do to prevent the unexpected, you can prepare as best you can by maintaining an emergency fund to help you in those types of situations.

Now, let’s get to work on your do-it-yourself debt reduction plan…

Step One: Write Down All of Your Expenses

The first step may be the most difficult and possibly depressing.  Grab a pad of paper and a pen (or create a spreadsheet on your computer) and start listing all of your expenses.  List everything you spend money on and how much is spent.  Include phone and utility bills, grocery shopping, gas, cable or satellite TV, Internet service, bank fees, newspaper, etc.

Don’t forget to include quarterly or annual expenses as well.  These may include things like license plate renewals, insurance, property taxes and so on.  You may wish to divide these amounts by 12 to include them in your monthly budget.  By setting aside funds each month for this purpose, you can be sure to have the money on hand when these bills come due, instead of scrambling for cash.

Total everything up so you have a figure for your monthly expenses.

Step Two: Write Down All of Your Income

The next step is to write down all of the money you make each month.  For most people, this is going to be based on their paychecks.  Just total up your monthly income and you’re all set.

If you have any sources of income that vary in amount, such as payments for freelance work or whatever else you may do for extra income, you can either use the average amount you make or only count the lowest amount you typically make in a month so you are basing your figures on a worst case scenario basis.  You don’t want to base your income estimates on optimism; you want to base them on cold, hard facts as much as you can.

Step Three: Let’s Do Some Math!

Subtract the amount of your monthly expenses from the amount of your monthly income.

If you end up with a positive number, you are doing well.  It means you should have extra money left over at the end of the month.  You can use that extra cash to pay toward your debt.  Don’t look at it as “extra” money you can go out and spend!

If you end up with a negative number, that’s not good.  It means you will need to spend less money or make more money, or possibly both.

What you want to do is to use this information to develop a budget for yourself to reduce your debt.  As soon as is possible, you want to end up with a positive number for your monthly income minus monthly expenses.  The sooner you reach a positive number, the sooner you will have excess cash on hand that can be used toward paying down credit card debt.

The Bottom Line

Don’t just read this and not act upon the information you have learned here.  You might think you can just guess at it and not have to write anything down, but that’s where a lot of people make their mistake and end up with wildly different estimates for their monthly expenses and income.

That kind of mistake can end up costing you more.  That is why it is better to have it written down on paper.  You don’t want to have to rely on your memory as to whether or not you already included one item or another when estimating in your head.

Even if you’re buried under a pile of credit card debt, it is never too late to take control of your finances.  Many people are realizing their fiscal habits have not served them well, and are taking a good hard look at how they handle their money and their credit.  Of course, it can be discouraging to be more financially responsible while seemingly not making so much as a dent in your debt.  It can result in many people giving up and reverting to their old habits, which can get them in even further financial difficulties.

It will be a big boost to encouraging new habits if you can get your existing debt paid down and under better control, so that you get that all-important positive feedback for your new fiscal discipline.

So, let’s take a look at some ways to reduce your debt rapidly.  Bear in mind, however, that, once you use this strategies, you will need to continue to maintain your discipline with your money so that you don’t fall back into debt again.  These are strategies that, while effective, may not be practical to repeat again and again if you keep falling into debt.

Once you get out of debt, do everything you can to stay out!  Do not allow yourself to fall back into your old spending habits.

Now, let’s look at these three ways to rapid debt reduction.

Get More Money Coming In

It sounds tough, but it’s not impossible.  One problem is that too many people simply dismiss the idea as impossible and don’t consider it further.  But, there are many ways that you can get more money and, hopefully, one or more of them will work for you.

Getting more money doesn’t necessarily require taking on a second job or anything like that.  If you can reduce your regular expenditures, that can be equivalent to adding more money to your budget.  It may not give you as much money as a part-time job, but it can provide you with extra money you can use to pay off your debt.  Every little bit helps, because small amounts do add up!

If you cannot find or take on an extra job, you can also look at selling things.  Do you really need everything that you have? How many of those things around the house are the very same purchases that put you into debt?  Which is more important to you, holding on to those things or paying off your credit card debt?

Most people don’t end up with large credit card debts because they bought big ticket items; a lot of people wound up in debt by spending a little bit at a time.  It’s way to easy to justify a small purchase, because it’s only a small amount.  But, do it too often, and throw in interest charges, and it gets out of control fast.

So, conversely, you can also pay off your debt a little at a time.  Though we are interested in rapid debt reduction here, that doesn’t mean you should forego other opportunities to save—every little bit helps!  And, once you start increasing the amount you pay on your debt, even if only by small amounts, you will see that debt come down faster than it otherwise may have.

You can also consider selling any investments you may have, such as stocks, bonds, real estate, and so on.  If, for example, the interest rates you are paying on your credit card debt are higher than the interest you are being paid on your investments, you will likely be better off selling those to pay off your debt rather than see your debt’s growth outpace the growth on your investments.

You should, of course, discuss a potential sale of investments with your accountant, financial advisor or other professional, especially with regard to figuring out whether any tax penalties will apply and which way be the best way to pay off your debts.

Call Your Credit Card Company

People often overlook this.  With the economy such that it is, and so many people in default, it may be easier than ever to negotiate better rates for you.  It’s better for them to make a little less money than to make none at all.

A lower interest for rate on your debt will help you pay it off faster.  It will mean that more of your payment amount is applied to the principle on the debt rather than the interest on the debt.  That will help you get that debt paid down faster too.

Debt Consolidation Loans

Another option is to consolidate your various debts into one loan.  This can give you one payment to worry about, rather than multiple payments, and a reasonable interest rate that may serve you better than assorted interest rates scattered across multiple debts.

You should, of course, research debt consolidation loan firms carefully before making a decision.  It may also serve you well to discuss this with your accountant or other financial professional.  Make sure you deal with a reputable firm and that you fully understand the terms and ramifications of a debt consolidation loan before you pull the trigger on getting one.

Of course, don’t turn around and start maxing out the credit cards you paid off with your debt consolidation loan.  You’ll only end up making things worse for yourself.

As part of getting a debt consolidation loan, you should also develop a detailed financial budget so that you can manage your money better and stay on track with making payments on that loan.  If you can do that beforehand, and get into the habit of following your budget and staying on track with your budget, that will serve you better in the long run and can help you avoid falling back into debt.

The Bottom Line

These strategies can help you reduce your debt rapidly.  How rapidly?  Well, that all depends.  However, don’t disregard them because they aren’t overnight solutions!  The sooner you get started on doing something to reduce your debt, the sooner you can be rid of it!

If you’re buried under credit card debt, it may be difficult to think of any goals outside of paying off that debt.  However, as you work on paying off your credit card debt, you can also work toward achieving your goals.  Think of the debt as one of the bumps along the road to your success.

Additionally, keeping a focus on achieving those goals can also help you in paying down your debt.  It can help keep you from getting distracting by schemes that may promise you big money but ultimately throw you off track and impair your ability to pay your debt and reach your other goals.

Step 1: Start with Your Goal(s) in Mind

The first thing you need to do is to fully define your goals.  Imagine yourself and your situation as you want it to be one year, five year, ten years from now.  In these planning stages, go ahead and daydream a little bit.  Visualize that future for yourself.

Write down where you will be and what your life and lifestyle will be like.  Will you have a big family? A fancy house?  Will you live in the same area you live now, or will you have moved elsewhere?

What are your passions?  Collecting sports cars?  Traveling the world?  Gardening?  Raising exotic animals?

How will you spend your downtime?  Will you go to lots of plays or sporting events?  Or will you spend the time poolside in your backyard?  Will you eat at fancy restaurants, or have a top-notch backyard BBQ?

Be clear in your goals.  Don’t just say you want a “big house” but define what you mean by big.  What is big to you?  Three bedrooms?  Five?  Ten?  Do you want a 2,000 square foot house?  Or, maybe to you, 10,000 square feet would be big.

And so on.  The more clearly you can define your goals, the easier it will be to develop a plan that will keep you on track with meeting those goals.

After you consider where you will be, begin to formulate a plan to get yourself there.

Step 2: Develop a Plan

Work on figuring out steps to get yourself to those goals you set out for yourself.

Again, be as specific as you can.  Naturally, among your goals will be paying off your credit card debt.  How will you get the money to do that?  Will you work additional hours at the office?  Will you cut expenditures in other areas so you can apply more to your debt?  Will you take a part-time job?  Will you offer services online or sell some of your stuff on online auction sites?

Make these plans specific.  If you plan to save money, how much?  How much money will you set aside each week?  Twenty-five dollars?  Fifty dollars?  One hundred dollars?  Or, maybe you’ll set aside a percentage of your take-home pay, like 10% or 15%.

It will, of course, be beneficial to also develop a budget for yourself, and make sure you stay on budget and on track with your goals.

Setting some timelines will also be beneficial.  When do you want your credit card debt paid off?  When do you want to be able to buy that big house?  Once you work in some timelines, you can work backwards from that goal in order to better plan what you need to do now to get there.

Step 3: Implement Your Plan

As part of implementing your plan, weed out your needs vs. wants.  What do you need to reach those goals versus what you want?  For example, if you want a big house and aren’t that into fancy cars, there’s no sense buying a fancy car just because you may come across a good deal in the meantime.  Is that fancy car something you need to reach your goal, or just something you’d like to have?  If the latter, pass it up so that you don’t get thrown off-course!

And, even if that fancy sports car is a part of your future goal, what will buying it do to your plan?  Do you have a garage suitable to store it?  Can you afford the maintenance?   Will buying it now, even at a cheap price, be a good deal in the long run?  Or, will the extra costs delay your goals even more?  If it delays your goals, don’t buy it just because you want it now; instead, stick to your plan and buy it later, when you can afford to both buy and maintain it.

Don’t let the argument that “this is part of my goal” cause you to spend money unnecessarily.  It can be hard to let a perceived opportunity slip by, but it may be necessary sometimes.  For example, if you spend $1,000 on something, that’s $1,000 you won’t be applying toward paying your debt.  And that means you’ll end up paying more in interest rates.  And, if that happens, how much did that $1,000 purchase really cost you?

Also, when considering your goals, consider the type of person you will be when you achieve those goals.  Will you be more confident?  More sociable?  More outgoing?  Why wait for success to be that person?  You don’t need to spend money to be more confident.  You don’t need to spend money to be more sociable.  You don’t need to spend money to be more outgoing.  Changing your attitude doesn’t cost you, so be that successful, confident person today!  Doing so may even help speed you along to reaching your goals.

The Bottom Line

Too many people don’t plan at all.  And, when you don’t have a plan, it can be hard to move forward.  Often, you might think you have a plan—it’s just all in your head—but the truth of the matter is that, if you go to write that plan down, you may just find you don’t really have much of a plan at all!

If you want to improve your chances of paying off your credit card debt, if you want to improve your changes of reaching your goals, then develop a plan, implement that plan and stick with that plan.

If you’re struggling with credit card debt, you probably want nothing more than to live debt free.  While that may not be possible at the moment, you can still embrace strategies for debt free living in order to better manage your money (and get that credit card debt paid off!) and to make sure you don’t get deeper in debt.

So, let’s jump right in and take a look at four strategies for debt free living.

Pay Off Debts as Soon as Possible

Make more than the minimum payments whenever possible.  The more you can reduce what you owe, the less interest you will have to pay, and the sooner you can get the debt paid off.

If you encounter situations where you must use your credit card, pay those new charges off as soon as possible too.  A good strategy would be to pay the minimum amount due on your credit card each month, plus the costs of any new charges you made, plus as much more as you can afford to pay.

For example, let’s say your minimum payment is $100, you put $75 in new charges on your credit card for the month and your budget leaves you with an extra $155 of spendable cash.  In that case, pay $255 on your credit card.  That covers the $100 minimum, plus the new charges of $75, plus an extra $80.  By doing that, you can keep the balance going down in larger amounts—which means you can get it paid off quicker—than you would if you only made the minimum payment.

And, of course, once you get your credit card paid off in full, pay off any new charges you make each month and don’t carry a balance.  (If you cannot afford to do that, don’t buy new stuff with your credit card!)

Prioritize Wants vs. Needs

When it comes to making purchases, you need to separate your wants from your needs.  For example, you might want a brand name cereal, but if the store brand is cheaper and just as good, that may be all you really need.  You might want a video game system for entertainment, but if all you need is something to pass the time, you might be better off buying a deck of cards or a book to read.  Similarly, instead of buying a steak, settle for hamburgers.

Of course, you need to be careful too and not just buy the cheapest thing.  Sometimes, the least expensive product might end up being the most expensive in the long run.  Let’s say you need a new washing machine.  You may want a high end model, but you really only need a basic model.  However, even among the basic models, there will be various selections.  The cheapest one is not necessarily the one you should buy.  There’s no sense buying a cheap model to save $50, if it ends up breaking down sooner and you end up needing to repair or replace it in a couple short years.

Make sure you do some research to make sure you are buying a good product that will last for years.  You’ll be better off spending that extra $50 if the more expensive model will last twice as long before it needs to be repaired or replaced.

Maintain an Emergency Fund

Whenever possible, you should set aside money and save it in an emergency fund.  This could be a separate savings account at your bank or it could be as simple as a shoebox you keep in a secure location.

We often run into situations where we need money beyond our usually expenditures.  Maybe your car needs to be fixed, or you need to repair your roof after a storm, or maybe you, a family member or a pet will have a medical emergency.  You never know what may happen in life, but, if you have an emergency fund, you can be prepared for those situations and be able to cover them without breaking the bank or putting yourself further in debt.

Do your best to ensure that your budget includes setting aside money in an emergency fund.

Be Creative in Living on the Cheap

Always be on the lookout for new and different ways you can save money.  If you normally spend $50 on a night out, try to have a night on the town for only $45.  Clip coupons, watch for sales and look for bargains.  When grocery shopping, look for store brands, consider less expensive alternatives and consider buying often-used products in bulk.  Check prices to see if different food options might save you money.  You don’t have to just look for alternative brands—you can look for alternative foods as well.  For example, if you normally but spaghetti, look into ramen noodles to see if that would be cheaper.  Or vice versa.  If you normally spend $200 on groceries, try spending only $180.

And so on.

Always be trying to reduce what you spend.  You could even make a game of it.  Keep a scoreboard at home.  Score points for reducing expenditures.  If you have a family, get the family involved.  Give points for suggesting ideas that save money.  You can teach your kids to live debt free by example and with your game play.  So, maybe when they get their own credit cards someday, they will be well-prepared to avoid getting into debt with them.

The Bottom Line

You don’t have to be debt free to actually begin living a debt free type of lifestyle.  By doing so, you can help get your credit card debt paid off sooner while at the same time practicing new spending habits which will help you stay out of debt once your credit card debt is paid off.

Don’t wait!  Start a debt free lifestyle now!