Getting out of debt ought to be easy. You must either earn more, spend less, or combine both to reduce your debt. Although it may sound simple, it’s easier said than done. It’s certainly possible if you follow a few easy steps.

Follow this process and start climbing out of debt today:

1. Create a monthly budget. It’s impossible to get out of debt if you don’t know how much you spend versus how much you earn.
   
   
   • How much you’re earning each month can be determined by looking at your pay stubs from your job. Then, add any income you might have, such as dividends or interest payments from investments.
     
     
   • To figure out exactly how much you’re spending each month, list all your regular monthly bills. For expenses that vary from month to month, such as groceries or entertainment, try to estimate the amount as accurately as possible.

• You can create a monthly budget after knowing how much you earn and spend.
  

• Discover what things you can live without. This requires you to differentiate between wants and needs.
  

1. • Determining that you need food, clothing, and shelter is easy.

• Be prepared to sacrifice things like cable television, eating out at restaurants, travel, and entertainment.
  
  

1. 1. Realize that not all money-saving methods require great sacrifice. You can do some things to save money without giving up the things you love.
      
      
      • Use coupons when you go to the grocery store.
        
        

• If you need clothing or other items, wait until they go on sale.
  
  

1. • Bring your lunch to work rather than eating out.
     

Some Tips for Paying off Your Credit Card Debt

After making a budget and finding ways to save money, it’s time to use that extra money to start paying off your credit card debt.

Implement this plan and start paying off those credit cards:

Pay off the cards with the highest interest rates first. With these cards, less of your payment goes toward paying off the amount you owe. By paying off high-interest cards first, you’ll be saving money that can be used to pay off other cards.

1. 1. Contact your creditors. If you contact your creditors, you may be able to negotiate a lower interest rate or better terms on a repayment plan.
      
   2. Consolidate your debt. You can save a lot of money by taking multiple high-interest-rate credit cards and rolling them into one loan with a lower interest rate.
      
      • Do your homework before choosing a loan consolidation company to work with. Research the company online to ensure that there are no complaints against them. You can find both positive and negative reviews from other customers.
        
   3. Keep the credit card accounts open after you pay off the balances. Closing the credit card accounts as soon as you pay them off may seem like a good idea, but it can lower your credit score.
      
      • One of the factors that help determine your credit score is the amount of available credit you have compared to the amount of debt you carry.
        

• If you close the accounts as you pay them off, the ratio of available credit to debt will decrease and adversely affect your credit score.
  

The only other thing you can do to accelerate the process of paying off your debts is to earn more money. If you can get some overtime at your job or take on a part-time job, you may earn some extra income. If you have extra things lying around the house that are just taking up space, you could sell them on eBay or have a garage sale. Every little bit helps.

The first step is the hardest to take when you have to change. But you’re now armed with the information you’ll need to climb out of debt and into abundance. Start today for a brighter tomorrow!