Regain Your Financial Freedom: How to Get Out of Debt

By: Laurie Martin

In a world which relies mostly on a credit system, one of the most common disadvantages is that people get in debt more than they can afford to. The instantaneous factor of using a credit card is what makes it so tempting to use, so if you are not careful, you might end up having a mountain of credit card debt.
Top Tips on Getting Out of Debt
Let’s say that you have more than two credit cards. When you add your monthly credit card bills, utility bills, mortgage and all your other household and personal expenses, it really is quite a challenge to learn how you can manage your finances.
Before you know it, you will be up to your neck in credit card bills. So what are you supposed to do so that you can get out of debt? Here are some of the top tips that you need to keep in mind:
• Make sure that you are not living beyond your means.
The best way to do this is by setting up a realistic monthly budget for any expense that you may have. Monitor the ins and outs of your expenses. Evaluate your current living expenses and determine which areas you can actually cut back on. If you see that you’re spending too much on dining out or entertainment, you can probably set a limit and use your creativity to think of other activities to keep yourself occupied, which requires little or no money at all!
• Create a system wherein you can maximize the payments that you are making on your credit card bills.
The rule of thumb to follow if you are deep in credit card debt is to first pay off the balance on the credit card with the highest interest rate. Pay off and close any other old credit card that you are not usually using and stick to about four so that you can maintain a positive credit history. Make sure that the credit card accounts which remain open are ones with the most favorable terms. Learn how to say no to offers of increasing your credit card limit if you know that you cannot easily pay them off in three months or so.
• Cut back on using credit cards, use your cash more.
Sure, using a credit card to pay for your purchases is ultra convenient, but it is quite difficult to stick to your monthly budget if you always keep your plastic money handy. However, it is more budget-friendly if you stick to using cash more.

• Additional debt management tips.
More often than not, creditors are willing to give you a repayment plan rather than having your account sent to collections. If you know that you will have problems paying off your bills, call your creditor to work things out – they should be more than willing to assist you.
At the end of the day, getting out of debt is all a matter of making savvy financial decisions. By looking at the bigger picture as far as your finances are concerned, you can figure out ways on how you can get out of debt and finally regain the financial freedom that you’ve always wanted to have.

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Avoiding the Credit Crunch is a step-by-step program designed to provide you with proven techniques to eliminate your debt and help you save money. If you’re looking for valuable information on how you can reduce your debt and budget your money, visit

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