Nobody enjoys being in debt.  Yet, millions of people around the world are drowning in it.  If you are ready to take control of your finances and get out of debt once and for all, follow these few simple tips.

Tip #1:  Be Honest With Yourself

The first step toward getting out of debt is to be honest with yourself about your financial situation.  Don’t try to sugarcoat it and make it out to be less of a problem than it really is.  At the same time, don’t make promises to yourself that you know you cannot keep.  If you know that you honestly will not be able to give up that gourmet cup of coffee you have every morning, don’t create a budget that cuts it out from your daily expenses.

Tip #2:  Take Control

While you should still allow yourself a little “play” money if at all possible, you really need to take control of your spending.  Consider why you are spending as much as you do.  Do you really need these items, or are you just enjoying the thrill of spending?  Keep track of what you spend your money on for an entire month – you just might be surprised at the number of things you can cut out of your monthly budget.

Tip #3:  Leave the Credit Cards at Home

While credit cards are great for emergencies, their convenience makes it far too easy to overspend.  For some reason, most of us don’t equate using a credit card with actually spending money.  But, when you watch the green pass from your hands to the hands of another, it really hits home that you are spending your hard earned cash.  So, leave the credit cards at home and you will be less likely to engage in impulse buying and other purchases that can get your finances quickly spiraling out of control.

Tip #4:  Pay All of Your Bills on Time

Paying your bills late will wreak havoc on your credit report.  As a result, you may find yourself paying more in finance charges are your interest rates are increased.  And, most companies charge rather large late fees.  Paying your bills late is just like simply giving your money away.

Tip #5:  Take Advantage of Refinancing

If your credit is still in good shape, look into refinancing your home at a lower rate.  You can save literally thousands of dollars by dropping your interest rate just slightly.  If you are in really good financial shape, you can also look into shortening the life of your loan.  While you may have to pay a little bit more per month than you were previously paying, you will pay far less in the long run and be out of debt that much quicker.

Tip #6:  Negotiate With the Credit Card Company

If you are still paying an annual fee or high interest rates on your credit card, and you have been a customer in good standing, it is time to give them a call and do a little negotiating.  With so many credit cards out there vying for your business, there is no reason to allow a credit card company to get rich off of you from finance charges and annual fees.  Ask the company to drop the annual fees and to lower the interest rates, making it clear that you will find another company to work with if they aren’t willing to make you happy.

Getting out of debt requires taking control of all aspects of your finances.  From your mortgage to your credit cards, find as many ways as possible to reduce the amount of money you put out and keep more in your pocket where it belongs.