One of the first steps to getting out of debt is to stop charging up your credit cards. It’s hard to reduce your debt by constantly adding to it. Leave your credit cards at home the next time you go shopping or better yet - cut them up!

2. Pay cash.

You need to live within your means. Start finding ways to cut back on expenses and save money. Again, we need to stop creating more debt and making the problem worse. You will want to start finding a steady amount each month that you can apply to paying off debt. For example, if you could take your lunch to work a few days a week instead of eating out, you could save over $100 a month. Wouldn’t that be worth it to not have a house payment?

Take a close look at what you really don’t need to spend money on and apply that savings to paying off debt. Find ways that you could save money on eating out, clothes,and household expenses.

3. Figure up how much you could save monthly on these expenses and apply your savings to paying off debt.

It is a process that could take a little time, but it’s well worth it. You may discover ways you could save money this week, and find another one next week.

4. Apply the money you saved on expenses to your debt.

Start with your credit cards It’s best to concentrate on paying off one credit card at a time and then move on to the next one.

Once your credit cards are paid off, then start paying off your car payments. By this time, you should have a decent amount of extra money each month since you are using the money that you were spending on credit card payments to attack the car payment.

5. After paying off your cars, then start on your mortgage.

Now you will take the money that you were wasting on credit card payments and car payments to pay off your mortgage.

If you continue this process, you will have your mortgage paid off in about 5 - 10 years. Now, how would it feel to go to your mailbox and not have a big house payment waiting for you each month?