Are you like most Americans, deep in debt and getting deeper? Would you like to get out of debt or at least learn to control credit? If you answer yes to these questions, there is help. Most people buy on credit for one thing or another in their life. The home of their dreams comes to mind and this is fine. The debt for real estate is considered good debt that is debt that can be bought fairly cheaply, i.e. a low interest rate and may become a solid asset that will produce more wealth for the buyer. Maybe a short term higher rate could be called good debt if when invested it will offer a return higher than the cost of the loan. This would be considered good debt as well. Nobody gets broke taking a profit.

Lets say you are in a different kind of debt, maybe credit cards, a car loan, or department store debt. This is considered bad debt, debt that has a high interest rate and short terms. Avoid this debt at all costs. If it is too late, you can reduce this debt by focusing your funds toward the highest interest rate debt you carry and pay it off the fastest. You will be making minimum payments on the rest of your debt. Then when this first debt has been eliminated you can re-focus the payment you were making on the first debt, the eliminated debt, to the second highest debt. Together with the normal second debt payment, you will be making substantial payments and the balance will be paid off very quickly. You should continue to do this until you are debt free.

To turbo charge your debt payoff plan, create a small business that will bring in $200 to $300 per month and add that to the first debt payments. If you have paid off all your debt your ready for a big step, O.K., this is where a little self discipline comes in. Cut up and close all credit card accounts, except for one or two. These cards are for emergencies and reservations for travel. If you see a nice blouse or pair of shoes in the store and dont have the cash, do not reach for these credit cards. Wait until you have the cash and go without for a short while. If the purchase is larger, say a new car or boat, wait until your small business has grown large enough to purchase these items with cash. This will keep you out of debt, help create a higher net worth and even give you more power at the negotiation table. You win all around.