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STEP 1: Develop a budget so you’ll know how much money you are bringing home and what is being paid out each month. One column should show how much money you bring home, the next column should show recurring bills that are paid (mortgage, utilities, phone, pet food, church, student loans, credit card debt, etc.) and the next column shows where the rest of your money is going. You can look at your credit or debit card statements to get the details to include on your budget.
STEP 2: If you get a year-end summary of your credit card usage, that is a great tool to see where your money goes each month and help you determine where you might need to decrease spending. If it doesn’t come automatically, call to see if they can send you one.
STEP 3: Once you review your budget, decide where you may need to cut, or where some money would be better served. If you are only paying the minimum amount on a credit card, set a goal to double that amount the following month.
STEP 4: The book Money Makeover, by Dave Ramsay has great insight on ways to pay things off quickly. Go to the library, buy it at Half Price books or another discount bookstore, or ask friends if they have it for you to borrow.
STEP 5: Set yourself a goal for when and how you will pay off debt. Start saving money and living within your means. You will be SO glad that you did.
