Add No new debt

Do you want go get out of debt?  If your answer was yes, then you must know that the only way to get yourself out of debt is to change your spending habits. Some people make it their New Year’s resolution to not add any new debt to what they already have.   Once you have a steady income that you can count on then you can begin to pay down your debt and put away a cushion of $500 for emergencies, then you can then take the next step.

The next step is to stop from using your credit cards. If you are one of those who carry balance from month to month, then you are wasting your money and will need to put those plastic cards away.  You will be left with paying for thing with cash or a debit card.  Only in this way will you will not be able to add any new debt to your pile.   You cannot apply for any new loans and this includes payday loans, personal loans, car loans or help from friends.  Refinancing can be beneficial in some circumstances. If you can replace one loan with another that reduces both the interest rate and the amount of time you are in debt, then go for it.