Money Management Debt Relief

15 Steps to managing your money to get out of debt

Reducing what you owe isn't always a simple process. While it takes years to get into financial problems, many people feel getting out should be instant. It isn't, it's a step-by-step process you need to follow, and understand, so that you don't repeat the same mistakes again, or make new ones!

Step 1:  Review and understand where your budget went wrong and where excess spending exists. Take steps now to reduce spending in those areas, even if it means avoiding certain situations that trigger overspending.

Step 2:  If you don't have a living budget in your Money Management Plan, prepare one now or you won't stand a chance for permanent debt relief.

Step 3:  If you overspent because it made you feel better, or because of other personal issues, now is the time to deal with those issues once and for all. If you need help, counseling can be of tremendous benefit to get to the root of overspending problems so you can enjoy permanent debt relief.

Step 4:  If you are married, or have a significant other, talk to them! Open communication about finances is essential to maintaining your money management plan for debt relief, and reaching your financial goals together, not to mention the longevity of your marriage.

Step 5:  Use recommended Budgeting Guidelines to get your budget back on track. If one section exceeds the recommended percentage, you need to cut back there, or, modify the percentages to fit your budget. In either event, the total percentage cannot exceed 100%. You need to see your savings build, you need to see your debt reduce, in order to have the incentive to stay on your budget to get the debt relief you seek.

Step 6:  If you are “keeping up with the Jones's," STOP! The Jones's will be glad you did, and so will you! You might even want to give them the url of this site, after all, maybe they were trying to keep up with you and need debt relief too?

Step 7:  If your budget allows, pay extra on high interest-bearing accounts such as credit cards. Only increase the payment on one account at a time until it is paid off. Remember, you need to see the debt reducing. Larger payments on one account will show this better than extra payments on several accounts at the same time.

Step 8:  If you get a tax refund, bonus, or other intermittent income, use this money for immediate debt relief, after you have a cushion set aside for emergencies.

Step 9:  Whether debt reduction, or meeting goals, you need to keep track of all income and expenses. Update your budget regularly. You should keep on top of spending, and your budgeting, to make sure you don't fall into old habits again.

Step 10:  Stop using credit cards. This is very important to your financial future. Until you are back on solid financial ground, you need to bite the bullet and quit spending. Especially spending with high interest-bearing credit cards!

Step 11:  Come up with ways to increase your income: a second job, selling unused items, etc. Get the family involved in ways to reduce spending and/or increase income. Work together to meet your goals for debt reduction and financial security.

Step 12:  Use the Debt Settlement and Debt Collection sections of our site to see if you can obtain any savings on payment of your debts.

Step 13:  Take advantage of online resources to save money on your spending including groceries, utilities, shopping, travel and more.

Step 14: As you pay off department store charge accounts, write a letter to the creditor to close the account. These cards are notorious for higher interest rates. Also request they report to the credit bureaus that the account was closed at your request. Send a copy to each of the credit bureaus for them to include in your credit file. This shows good repayment history, and responsible debt management.

Step 15: Never give up on learning sound money management practices. Make them the good habit that replaces your bad debt habits. You won't be sorry!

When Your Budget Doesn't Cut It

Ok, let's assume you have done everything you can to reduce spending,, increase income, and are maintaining a budget. But you find that your expenses still exceed your income each month, and you are just going further and further into the hole. It's time to take action to get out of debt, so you can reduce the stress, and get back on solid financial ground.



If you prefer to track your finances off the computer, we found a unique and easy to use budgeting system that will help you in your every day tracking of your income and expenses.

Designed to track all your income and spending, including credit card usage, bank accounts, and cash on hand, this very simple tool is small enough to carry with you, right in your checkbook, wallet or purse. Budgetmap looks just like a check register.

This new spreadsheet check register makes it very easy to track and maintain your budget, because it opens up to show columns to allocate income and expenses according to your budget. You won't get lost in paperwork anymore with this money management checkbook register from BudgetMap.

With Budgetmap, you will know where your money goes, and what's more, where it needs to go! We highly recommend Budgetmap to help you break bad debt habits, and create new ways to save money.


If you find that you can't keep your budget on your own, you may need credit counseling in order to get out of debt:

If you are absolutely overwhelmed with credit card debt, then you need to check out debt consolidation/settlement. For a free consultation, click here.

CareOne Service Providers adhere to AICCCA standards and offer online account management. Take the initiative, and make the initial contact with CareOne Service Providers for online debt management and credit counseling services.






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Getting The Answers You Need

Be sure and check out the various debt solution reviews, tips, and articles provided on DebtSteps.com:

Find Your Solution offers a comprehensive list of reviews to get out of debt once and for all. Get answers on bankruptcy, consumer credit counseling, debt settlement, money management, budgeting, loans and mortgages.

Debt Relief Tips & Articles to guide you on your way to financial freedom. Get the lowdown on dealing with debt collectors, handling money problems, understanding your credit, and more.