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How to Get Out of Debt and Save Money

By Gina E Clark

An alarming number of people in the United States are in debt today, and with the economy spiraling downward out of control, that number can only climb. Maybe you are in debt. Maybe you see no hope and no way out of it. Please don't give up and don't despair. There is hope and relief available from debt.

One way out of debt that I want to mention first because many people look to it for relief is debt consolidation. This is combining all of your debt into one place, which means one monthly bill. If you decide to look into this, proceed with a great deal of caution and research the company/organization thoroughly. Quite often these are nothing but scams designed to actually keep you in debt.

You will probably have to make some major changes in the way you handle money in order to get out of debt. You need to set up a budget and stick to it. I won't go into detail here about making a budget, but look for previous articles or just click on the link below to my blog where I explain very clearly what you need to do to create a budget and manage your personal finances, as well as offer a variety of money saving ideas. (Creating a budget is much easier and not nearly as scary as it sounds.) Once you have your budget made, you will automatically have approximately 20% of your income to pay directly towards your debt. This amount should help you pay off your debt much faster than you now expect. Remember that balancing your budget is a process and will take time, so don't get discouraged if it takes a few months for you to have your finances balanced. (I would also recommend cutting back on your fun money and every expense that is not absolutely necessary to pay even more toward your debt.)

In order to get out of debt and take control of your personal finances, it's highly recommended that you get rid of your credit and debit cards. From this point on, pay with cash for everything possible.

Another option to help you get out of debt more quickly is to sell your things. Do you have anything valuable, like pieces of art or jewelry? Silverware? If you don't have anything that valuable, but have a great accumulation of things, have a garage sale and sell your extra stuff. Or sell your things on e-Bay or Amazon to give you a little extra money.

Being in debt and seeing no relief is a horrible experience. Begin today to make these changes in order to pay off your debt as quickly as possible. The sooner you do, the sooner you will be able to breathe easier, relax and become financially secure.

Gina Clark writes on financial issues. Click here to learn additional ways to get out debt, save money and manage your personal finances.

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