It’s difficult to tackle debt but if you make a sincere attempt to become debt free by taking a few small measures, you’ll soon be able to get your finances back on track.

Becoming debt free may seem like a big challenge but many people have been able to pull themselves out of a financial mess by making just a few money wise decisions. First, you need to get a better understanding of the amount of money you need to pay back to your creditors. Take a look at the interest rate you’re being charged on each credit card and determine the minimum monthly payments you have to make. Use an online debt reduction calculator and find out how much money you could afford to pay on a monthly basis to become debt free. Depending on the amount you can afford to pay each month, the debt reduction calculator will tell you how many years it will take you to get out of debt.

Steps You Could Take to be Debt Free

  • Take a look at all your credit cards and think about whether you really need all of them. Switch to debit cards when possible as the cash will be taken out of your checking account and you won’t have to pay any interest on it. Don’t get rid of cards you’ve used for several years as this may hurt your credit score. Also, make sure you make all your outstanding payments on time. Set up auto debits if you have to as this will protect you from late fees.

Cutting Down Expenses to be Debt Free

  • You don’t have to change your entire lifestyle to get debt free, but you need to prioritize your expenses. If you support a family, get all members involved and ask them to help you achieve your goals by requesting them to curtail unnecessary expenses. Switch to better phone/cable Television and Internet plans. Cut your travel expenses down to a minimum and look at your credit card statements to find out where a major chunk of your money goes. If it goes towards shopping, dining out or expensive spa treatments, you may have to rethink your spending habits to get your finances back on track. Lastly, if you aren’t able to cope with those monthly home loan payments, consider refinancing your home loan. There may be better offers out there, ones that you could really take advantage of.