At some point in our lives we have all found ourselves with credit or debt problems. It may have been right after school as we struggled to pay off our student debt or when we purchased our first home. Some of us have gone through downsizing at work or been unemployed for a period of time. Those are legitimate reasons to go into debt and once we have gotten through those tough periods we managed to reduce our debts to a reasonable and manageable level.

Then there are the regular everyday debts that we incur because we need or want new appliances or kitchen cabinets, or even that long dreamed of vacation in Hawaii. Yes, we are all in debt to one level or another for a variety of circumstances and reasons but wouldn’t be nice to live without debt for at least a little while? Debt elimination is not simple but it is possible and it can also be relatively easy to do.

The first step in debt elimination is to review all of your debts. How much money do you owe and to whom? How much do you pay each creditor every month and what interest do they charge you? Then you will know exactly what you owe and how much it costs to carry that debt. Secondly, how much do you make? Count all of your income sources including employment income, investment income and any other revenue source that is regular and reliable.

The third step is to review your expenses. What does it cost you to live? Include all of food, clothing and housing costs as well as transportation and utilities. Estimate how much you spend on entertainment and the extras in life that you have grown used to having. Finally prepare a budget that shows your income and expenses on a monthly basis.

This will show you how much money you have to apply to your debt elimination plan and you are now ready to discuss your personal finances with an expert who can help you put your plan into action. Talk to your local banker first and tell them you want to get out of credit card debt. They will propose a series of options for you to consider that might include a debt consolidation loan or debt refinancing. If your situation is more serious they may suggest talking to a counseling firm such as ours to seek out credit counseling or other forms of debt reorganization.

Do you need help to set up your debt elimination plan? You can contact one of our Christian counselors using the form on the right for some free credit card help and advice. They will help you to lower your payments today.