1. Choose to Live Differently. A wise proverb states: “Live like you must live now, so you can live like you want to live later.”
2. Determine to Spend Less Than You Make. Appreciation for what we have often results in contentment with what we have.
3. Do Not Use A Debt Settlement Company. Most of these companies are a fast track to being sued and ending up in bankruptcy court.
4. Fund An Emergency Savings Account. Quickly acquire a minimum of at least $1000 in emergency savings and add to it each paycheck. Shoot for three months income amount, then six months. We either plan for emergencies or go into debt when they come.
5. Take Advantage of Automatic Payments. Pay as many things (including savings) as you can with electronic, automatic payments. What we do not see or touch, we do not spend.
6. Commit Future Money To Debt Reduction. Make the decision right now that at least 75% of any raises, bonuses, tax refunds, or any other additional income will go to paying off debt.
7. Pull A Credit Report. To make sure there are no “old” or “unknown” debts out there, pull your credit report. www.annualcreditreport.com is the place to get your report free.