For many, getting out of debt is a dream that will never be realized.
It isn't that the goal is unrealistic.
The problem is that achieving the goal gets more impossible everyday, as the balance that you owe on your credit cards actually increases everyday.
You can make getting out of debt a more realistic goal by using these simple steps.
1.
Stop using your credit cards right now.
Cut them up into tiny bits, and throw them away.
If you continue to use them, you will never be debt free.
You can get a prepaid credit card, or use the debit card from your checking account to pay for your purchases.
If you cannot pay for an item today - with cash - you cannot afford to pay for it tomorrow either.
This should become your mantra.
2.
For all of your secured debt, contact a debt relief and consolidation company to consolidate those debts into one payment.
The consolidation company will be able to tell you which of your debts can be included in the consolidation.
3.
For all of your unsecured debt, work with the debt relief company to eliminate the debt.
When you eliminate debt, you pay a portion of what you owe, and the creditor agrees to write off the remaining amount - making you completely free of that debt.
Note that when you settle your debt, you will be expected to make a one time payment for the entire amount that you and the creditor settled for.
A debt relief professional will help you with this.
4.
You should now have extra money each month, since debts have been consolidated or eliminated, and you are not putting yourself into further debt since you are not using credit cards.
With this extra money, make extra payments on anything that could not be consolidated or eliminated to pay those debts off faster.
If there are no other debts, talk with your debt relief specialist to find out if you can make extra payments for the consolidation loan.
Otherwise, put those funds in savings.