Debts, debts, debts… How did we get to this state, to become a nation of debts? Over the past few decades, millions of Americans have been swamped with debt, and sadly, this trend will continue for generations to come.

Debt elimination has become more challenging because creditors are aware that more money can be made by trapping people in debt and charging high interest rates and numerous fees. Creditors are happy to let debts snowball and see that debtors should owe money for life.

Ask yourself if you want to work like a dog just to provide a regular source of income for creditors. If not, then get serious about eliminating debt.

Sure, there are many people who claim to help you get out of debt (debt consolidation or debt settlement companies), but they don’t want that to happen. The harsh reality, as a debtor, is that no one looks out for your interests and the best way is to help yourself.

Achieving debt elimination is not easy and it can take a long time to resolve all debts. Learning and implementing the basic steps necessary to get rid of debt is necessary to achieve financial freedom.

control your expenses

Where did all the money go? Well the simple answer is to follow the money. Tracking your spending goes a long way toward debt elimination because it shows you where your money is being spent. You can cut hundreds of dollars from your household budget by eliminating unnecessary purchases.

Reduce unnecessary spending

The next step in your debt elimination plan is to reduce the amount of your expenses by a significant amount each month. Eliminating extra expenses like buying Starbucks coffee, designer clothes, glamorous cars, fancy dinners can save you thousands of dollars every year.

In addition to such high-end items, many people spend money on items they don’t really need, either for convenience or to keep up with the Joneses in their search for the latest and most stylish gadgets on the market.

To achieve debt elimination, you need to save more of your money and channel it toward paying down debt.

Cut extra credit cards

Grab some scissors and do yourself a favor. Cut out all extra credit cards except the one you regularly use and the one with the lowest interest rate. You’ll never pay off your credit card debt if you keep piling up charges every month.

If you have outstanding balances, the final cost of paying for items with a credit card can end up exponentially higher due to finance charges, interest, and any additional fees the credit card issuer may have applied to the account.

If you can’t pay for a purchase with cash, you should wait until you have saved enough money to pay for the item without using credit. Instant gratification has led many people down the path of financial ruin.

Be disciplined with debt payment

Let’s say you’ve done the above but after a few months, the urge to spend recklessly returns. Impulse purchases have derailed your debt elimination plan and you’re back to square one.

That’s a huge waste of effort. Remember that debt elimination takes discipline. You must make paying off your debts a priority. Any “extra” money after expenses should be used to pay off your debts.

If you stick to this regiment, you will see the fruits of your labor. Your debts will shrink and disappear faster if you cut back aggressively.

Start a savings account for emergency needs

While you pay off your debt, don’t forget to open a savings account for emergency needs. A main reason people are in debt is because an unexpected expense occurred. They have to take out payday loans or charge their credit cards to fix the problem.

Unexpected expenses like roof leaks, car repairs will occur, and having money on hand will keep you from going into debt.