The first step towards eliminating debt is to look at all areas of your spending and slash the items that aren't vitally necessary for your survival. You are in survival mode now so you need to think in that manner. Luxuries are off the menu until you are in a position to sleep peacefully at night and not fear the phone ringing thinking it is a debt collector on the line.



Day to day spending of 'petty cash' adds up to a considerable amount over the course of a year and it could be enough to clear one of your outstanding high interest debts.

Even buying one coffee a day can amount to quite a bit of money at the end of the year. Not only will that reduce part of your debt but you will also be saving interest that you would have been paying on that debt and the compound effect is more significant as time goes by.

Making your own lunch and taking it to work rather than buying it from the shop can also save a lot of money and you might be doing your health a lot of good in the process by eating better food.

Cooking your evening meals at home rather than going to takeaways or restaurants is one of the best ways to start slashing your spending.

Maybe you spend a little too much on clothing and you really don't need to have the latest fashion item when other suitable clothing is still hanging in your closet unused.

Are there any places that you could walk to rather than drive the car and save money in gas?

There are so many small areas where it is quite easy to slash your spending without impacting on your lifestyle all that much and it is these little drains on your income that are happening on a regular basis that are responsible for a lot of the debt that you have to be concerned with today.

This is the sort of money that you don't even notice going out of your pocket but you do notice the debt that accumulates because before you know it your creditors are knocking on your door asking for repayment.

Prepare a shopping list before you go shopping for groceries and make sure you stick to that list rather than buying anything that catches your eye while you are in the supermarket. Supermarkets are designed specifically with the way the items are placed to make people buy and having a list of items you require before you enter the shop makes it a lot easier to manage the temptation that they put before you to buy.

Write down every dollar that you spend for the week and then add that spending up to see just how much money you waste without realizing. Add this to your budget and then work towards slashing as many areas of spending as possible.