Nobody wants to be in debt. There are always circumstances that it could happen. What can you do about it? Take the first step by going to your creditors instead of waiting for them to come to you. Below is a way I learned a couple of years back, and used in my own life.

It worked for me, it can probable help you to.

What can you do when you're in debt?

First you are going to divide you're weekly / monthly income into several peace's.

1.. The first 10% of your income goes to a separate savings account.

More specifically, what you earn Monday morning is yours to keep, so it should go directly into a special account that you do not have easy access to.

You have to pay yourself first. Every week/month you'll see your account grow. Remember, you do not "touch" this account. If anything should happen to you it will give you additional serenity of mind or if you wait long enough you have enough capital to make a wise investment.

2.. The next 20% of your weekly / monthly income will go directly into another account with which you pay your creditors.

Draw up a list of your creditors and the money you owe them. Divide the 20% of your income into parts, to determine how much each of them would receive from you every month.

It could be more, it could be less money than they are receiving. Whichever way it works out, that will be the sum of money they will each receive. They will receive it every month.

What you are going to do now is writing your creditors a letter.

The following is a sample letter I learned from Bob Proctor when I was reading his book "You Were Born Rich."

Dear ...............:

As you know, I am in debt to you for $________, and I intend to pay you in full, plus interest.

To achieve this goal, I have been devising a plan during the past few days to put myself in a stable financial position. To this end, I have opened an account, and twenty percent of my income is going directly into that account.

That will enable me to have sufficient resources to live on, without worry or stress, and it will prevent me from falling further into debt. Each week/month you will receive a check for $_____ from my account, until my account with you is clear.

I am aware that this is not the figure I had previously agreed with you, but I'm sure you will be understanding, and appreciate what I am doing.

If you have any questions, please feel free to contact me. I'am excited about my new plans and if you would like to have me review them with you so that you might help others who are in your debt, I would be pleased to do so.

Thank you in advance for your kind cooperation.

Have a wonderful day!

Sincerely .............

Realize there is an "outside chance" that some unreasonable person will not want to cooperate with you. They might even go so far as to phone you and attempt to intimidate you with threats of taking you to court, etc. Hold your ground, because there is no court in the country that would not congratulate you, when you explained your entire plan for Financial Independence.

Moreover, you will find that 95% of the people, to who you write, will be most cooperative.

Understand that your letter to your creditor is a statement of fact and not a request, it's you who is in charge of your finances, not your creditors!

3.. Then there is 70% left over for you to live on. With this 70% you can pay your bills, buy food for yourself, and do nice things with your family/friends.

Let's review:

1. You have an instant estate if anything should happen to you.

2. You have a savings account.

3. You are paying yourself.

4. You have a debt repayment program.

5. You have 70% of your income to live on; to run the house and for entertainment.

6. Your mind is clear to carry on with your life.

From this moment on, never think "debt" again. Remember, that has all been taken care of.

Just focus on your savings account, and watch it grow.