The Debt Terminator Plan

Don't you just hate it when your credit card bills come and you see that your debts have gone up a lot? Then you are shocked even more with how much your minimum payment has gone up?

It doesn't have to be this way. Sure, you probably overused your cards because you were enjoying the privilege of buying things you wanted and paying for them later. And you may have been stressed or exhilarated and bought everything you wanted as a way to deal with your emotions. But as a result, your debts are now way too high and you don't have an easy way out.

Well, you are definitely not alone.

What's the solution? Create a debt terminator plan! Of course, you can hope you win the lottery. Or pray that you'll come into some large amount of money. But usually that just delays the inevitable. Instead, follow these steps for paying off your debts for real:

First, create a simple spreadsheet.

List each debt and put how much you owe and how much the monthly minimum payment is for each one. At the top of the list, put the card with the lowest debt. As the list goes on, the one at the bottom should be the one with the highest balance. By doing this, you are prioritizing. You now can clearly see which debt to eliminate first. Pay the minimum payment monthly for all cards except for the one at the top of the list that you are targeting for elimination. This will help you see results the fastest, and hopefully keep you motivated. Take this step very seriously because it isn't as easy as it seems. And it is the most important in your journey to becoming debt free.

Second, find a way to make more money.

OK, your debts are now higher than you can imagine. So you have to adapt to the situation. The best way to do this is by earning more. You can ask for a raise at work, look for a higher paying job, find a part time job, or start a small business on the side. Do whatever works best for you. You can also look for things in your house that you don't need anymore and can sell it somewhere like on Craigslist. People will buy just about anything, so give it a try! You'll then have some extra money to add to your debt on the top of the list. Yes, this means you will need to work harder. But the extra money will add up. And you'll be doing yourself a favor by getting rid of things that are just cluttering your house.

Third, look for as many ways as possible to save money.

Saving is not nearly as much fun as spending. But if you don't change your spending habits, you won't get out of debt. So try to live a frugal life and be penny-wise as much as possible. At this point in your life when you are deeply in debt, you must be thrifty and cut back on spending. Every dollar you save by being thrifty counts. And gets you out of debt that much faster. If you always eat lunch at restaurants, then now bring your own lunch to work. If you always buy new clothes and shoes, then now you have to stop yourself and just use your old things again, or shop at a discount store when you really need clothing. Go through your checkbook, bank statements, and credit card statement, and look for more expenses to eliminate. Living a simple life won't hurt you, but it will change your life!

This is just the start of becoming debt free. Real change comes as keep making good financial choices month after month, and year after year. You never know when a real money emergency will make sticking with your plan more difficult, so do as much as you can right now. And take your debt terminator plan seriously so you can enjoy the feeling or being debt free!