Be Debt Free???

Are you in debt? Do you want to be debt free? Do you think that being debt free is getting to be too hard for you or is impossible? Well, maybe this guide will help you.

1. Assess your problems. If you are in debt, figure out how much money you owe. Who do you owe it to? Is it the bank, a car dealership, or simply a friend that you lost a bet to? If it is just $0-100.00's look for a job to work and as soon as you get your paycheck, pay-up your debts. If it is a little bit more, keep working until you have worked it all off. If you need more than a few hundred dollars, you can either work it off, go to step two, or both! If you are deep in debt, you may need help. Churches and economic assistance will have information of where you can go.
2. Change your behavior. If your debt is a result of overspending (for example, you buy mass quantities of everything and/or buy things that you want, but are not necessary for living), do some budget planning. Get a friend who can save and doesn't have the spending habit. Bring him/her along when you need to purchase something. That person will be able to provide some advice to you.
3. Itemize your highest interest debts (generally credit cards, then car payment, then mortgage, etc.) and make minimal payments on everything but one, which you choose to pay off first. If one debt has much higher interest rate, pay that off first (This is called "Laddering", and may be more cost effective). If interest rates are similar for your debts, pay off the one with the lowest balance first ("Reverse Laddering"). This will allow you see your progress faster, and will make you feel good after each smaller debt is payed off. Review your finances thoroughly, crunch the numbers, and see which method would be the most effective for your situation.
4. After debt 1 is paid off, put the payment amount that you used to get it paid off in record time into the next highest interest (or lowest balance) debt, and so on. The new extra money that you put forth into the next debts is called your accelerator margin and you continually build it. Those of you who own Transforming Debt into Wealth know exactly what I mean. You are compounding the money that you are using to pay off your debts. These two steps are IT in a nutshell...except it assumes you have some cash flow.  
5. Prevent debt. Every paycheck, put aside some money for bills, food, and other needed necessities of living, and some money aside to save. Also put aside a little money for non-necessities; it is important to be able to buy things you want without going into debt. Keep saving money, and paying off bills so that you can pay off your debt.
6. Starting without a plan makes the job of getting out of debt so much harder and so its probably helpful to have some form of a guide