Tag Archives: Out of Debt

How to get Out of Debt in 5 simple steps:


The simplest way to stay out of debt is to spend less. If you imagine you need something, just stop and think about it. Even should you be in the store ready to purchase the item, walk out for at least an hour and more often than not you will see that you don’t feel the same urge to buy it. If you find that you do need something, make sure that you have the cash to pay for it.

Create a Debt elimination Box:

List all your consumer debt. Like your Financial Baseline items, this should be done electronically so you can keep track easily.

The list should include

(1) the name of the creditor,

(2) the amount you owe,

(3) minimum monthly payments, and

(4) the interest rate.

The Factoring Number:

To fill in the last column, the factoring number, the following simple calculation is necessary. Take the number in the amount of the debt, and divide that number by the number which is the minimum monthly payment required. Fill in the factoring number for each item on your consumer debt list.

Make a budget based on your spending record.

Write down the amount you spent in each category of spending last month as you budget for spending for the next month. Don’t sweat if you feel like the amount is too much. For now, just write it down.