When it comes done to getting out of debt it’s all a matter of will, determination, consistency, and most of all following a proven plan to guide you along the way.  So in this article I’m going to give a simple and easy plan for you to follow.

First off, before you can begin to pay off any of your debt you need to build a small barrier of protection to prevent you from slipping any further into debt.  To do this you need to save up a $1000 as fast as possible.  With this kind of money in place as the beginnings of an emergency fund you’ll be able to sleep better at night knowing you’ll be able to pay next months bills, and if something out of the ordinary with your finances does happen you’ll be able to take care of the situation.

The next step in this program once you’ve saved a $1000 is to set up a do it yourself debt settlement program.  This part of the program will guide you through the best to pay off your debt and pay the least amount of interest.  To do this gather all of your debts and align them from the lowest debt all the way up to the highest debt which should be your mortgage if you have one.  Next, start by paying the minimum amount each month towards each debt except the lowest balance debt.  The lowest debt balance should receive as much extra cash as possible.  Do this each month until the debt is paid in full.  Then move on to the next debt with the next highest balance.  Put only all the extra cash towards that debt and pay the minimum payments on the rest.  Continue this until all debts are paid in full including your mortgage.

Once all of your debts are paid in full the last thing you should do is finish building your 6 month emergency fund. To do this consider how much money you need on hand each and every month to cover all of your bills and live comfortable, and then times that number by 6 months.  For example if you need $3000 each and every month to pay the bills at hand and live a comfortable life you would then times that by 6 months.  This would mean that you would need an $18,000 emergency fund.

Finally, in the end consider all these steps and debt management tips to getting out of debt successfully.   In the end this plan does work but if you aren’t determined, strong willed, and able to stay consistent you may not be able to get out of debt.