What is the best way to become debt free?

[xs.essex]

I wish I could tell you there is an easy way but that would just be misleading you. It is much harder to get out of debt than to get into it. It is unwise to borrow your way out of debt - It's a kind of a con as you end up paying more.You don't say what kind of debt it is. If it is on a credit card, then you CAN borrow cheaper elsewhere to pay off the card, but please take proper advice as it is easy to go wrong.There is no trick to getting out of debt. It's a slog, doing the bleedin' obvious like never spending more than your income and not buying anything until it becomes absolute top of your priority list. You have to prioritise everything. Like I said, boring as hell but effective. You have to budget for everything you need to buy, including something towards paying off your debt.If you really cannot pay off the debt in the time scale you agreed, you need to talk to whoever you owe to agree some sort of payment scheme you CAN stick to. It could affect your credit rating and, of course, they don't have to agree to let you pay it off over a longer period. It might be worth getting in touch with a debt counsellor through the Citizens Advice Bureau. Good luck.

[beccasmom99]

1. Create a budget and follow it. List all expenses (rent, utilities, groceries, everything). Subtract those from your take home pay - no reason to use gross, then you'll just have subtract the taxes. From here you'll know how much you have left over every month. Take your smallest bill and concentrate on it - once that's paid off, take that payment and apply it to the next smallest and keep this up until you have your bills paid off.2. Don't use a credit card if you can afford cash. If possible, save the money until you can purchase it out right. 3. Tips for c/c use:a. Pay it off every month if you can.b. At least pay more than the miniumum.c. Do not go over 50% of you limit - 30% is best.4. Pay your bills on time each month. Most company's offer automatic payments. If you have a problem doing this, you might look into this service that way you'll never have another late payment.5. If you're going to be late - call the creditor ASAP and explain the situation. Some will work with you. Whatever you do, don't ignore the situation and just "not" make the payment. Always let them know what's going on.6. Review your credit report and make sure there is no inaccuracies. Dispute any if there are.7. Just remember that it takes time. Be patient. As balances go down and length of time is established - the score will go up.

[micheal]

buy things when they are on sale (stock up on them if they are shelf stable). printout online coupons. instead of going to the closest branch of a major retailer go to the outlet store (they usually cut the prices by quite a bit). instead of renting movies check out the selection at the library. if you are thinking about a major purchase wait until a major holiday (most stores hold huge sales). shop at thrift/second hand stores. instead of buying a book that you find interesting try to find it at a used book store or get it from the library (most libraries have a policy that lets them borrow from other library systems). to save on gas try taking public transportation if you have the time. instead of buying name brand foods try the no name brands (i cant taste the difference), the no names are usually cheaper. buy in bulk when buying shelf stable foods (normally you save money if you buy the larger size)i hope these tips help.

[Nattiedred]

Seriously, you need to pay off your debt, that is the only way out, if your debt is so bad, then call a debt program and see if they can help you.

[Lynn]

A great way to save is to eat your meals at home, and to make big economical batches of soups, pasta etc. that will last you the week. Saves money, saves energy. Walk anywhere that you can, saves gas plus it is good for your health, which will save on doctor bills. Instead of throwing out coffee grounds save them for you summer garden instead of buying organic matter. Grow your own veggies in the summer and freeze what you don't use. Turn your thermostat down 2 degrees. Insulate any drafty areas like around your windows or doors. There are so many tips out there on the www. You will find many that will be suitable for you. Take a part time temporary job. Learn to spend much less than you earn. Good Luck!

[Janice P]

Debt elimination involves three steps:Stop acquiring new debt. Establish an emergency fund. Implement a debt snowball. Here's how to approach each step. Stop acquiring new debt(This step can be accomplished in an afternoon.)This may seem self-evident, but the reason your debt is out of control is that you keep adding to it. Stop using credit. Don't finance anything. Cut up your credit cards. That last one can be tough. Don't make excuses. I don't care that other personal finance sites say that you shouldn't cut them up. Destroy them. Stop rationalizing that you need them.But the most important thing I can share is to get involved with a program that you can use to leverage your income producing ability. Sometimes the best way to get out of debt is to tap into something that produces more income than debt.

[banjet15]

Keep away from credit cards and budget on your incomings.