While there are many counselors, debt consolidation, and debt solution agencies in the marketplace, by the time you realize you have a problem you need to do something and do it fast. But it takes time to shop around these different services and in the meantime you must get something started to make an attack on your out-of-control debt situation. Here are some ways that you can get started today on you path to freedom from debt slavery. The first thing you must do is make a pledge to yourself to take on no new debt. But how is this possible when you've been borrowing on one credit card to pay another? No one said it would be easy but you must do this. Most are of the opinion that you should cut up your credit cards and you can do that but there may come very valid situations where you need one so make sure this is what you want to do. But if you are a person with even a little bit of self control then just resolve to not make any more debt and you won't need to do drastic things like cutting your cards into a credit card salad.



The next step is to set up a budget. Realistically look at what is coming in as far as cash and what you have to pay out. If you are in a situation where you have more obligations than cash then you will need to prioritize your bills. What this means is that your unsecured debts go at the bottom of the list. We are not advocating that you rank your unsecured debts as less important but when you have more obligations than income then the unsecured obligations have to wait in line. What else can you do? Think about it.

Prioritization means that you please obligations that you must pay in order to live at the top of the list. Your house payment and utility payments would go at the top. Your auto expenses would rank behind those although your need for a financed car and its usage should be carefully scrutinized. You need food and basic health items. You need medicines. You probably need a phone although you are more than likely ignoring it right now because of all the creditors calling. And if you have a car, you can't drive it without insurance so that needs to be prioritized as well. But if you are still paying for that surgical procedure you had two years ago and it was not covered by insurance, you may have to either negotiate with the payee a lower payment or just miss it one month. There is not much they or you can do about it.

After prioritizing, take a careful look at what you are spending money on. Maybe you have to stop the cell phone plan for your teenager and buy a pre-paid cell phone. Maybe you need to take the train or bus to work. Maybe you need to get rid of the second car. Maybe you need to have a rummage sale. Study and see what non-essentials you have and take steps to stop paying for them.

By taking the time to make the commitment to no new debt and organizing your payouts, you will at least start the ball rolling on freeing yourself from debt.