Winning Strategies for Reducing or Eliminating Your Debt Now!

At this point, you know where you are debt-wise. You have taken a hard look at your debts and you know where you stand. Now you are eager to get in action and start taking positive steps to become debt- free.
This chapter points you in the right direction … on the path to financial fitness, peace of mind and your future wealth. You are about to discover plenty of proven strategies to help you get out from under all those bills. Look over each strategy and choose the ones that work best for you.
The more you can do the better. Every person who is in debt should implement some of the strategies, such as the first one. Others are related primarily to credit card spending; you can use them to eliminate your credit card debt, but you’ll need at least one other strategy to deal with other types of debt, such as automobile loans. And other strategies, such as the ones relating to taking a second job or starting a homebased business, may be feasible only for people who have the time and ability to moonlight.
You are not expected to use all these strategies. But by offering you a lot of options to choose from, I know you will find at least a few that will work for you and will help you gain the  momentum you need to live the debt- eliminating, wealth-creating lifestyle that you deserve.
As you read these strategies, you will begin to understand that there are two keys to getting rid of debt quickly. First, you must stop creating debt. Second, you must find extra money to speed
up the debt elimination process and avoid as much interest as possible. To stop creating debt, you must simply stop using credit cards, taking out loans and “buying on time.” That may sound almost impossible at first glance. “How can I possibly live without
credit?” you may ask. You can when you recognize that credit should be your servant, not your master. You are not ruled by credit. You rule it-but only if you use it wisely. Strategies Two and Four deal with that.
Also remember what was said earlier about “good” and “bad” credit. Too many credit purchases fall into that latter category. Have you ever found yourself charging something that you would not buy if you had the cash on hand? Have you ever caught yourself using a credit card for an item that you could pay cash for if you could only wait a couple of weeks? You are not alone.
Plenty of people handle credit like this. Now you are wiser, and you can change your behavior. The second key to debt elimination, finding extra money, is also easier than it may sound
at first. The more extra money you find, the sooner you will get out of debt (as long as you are using the extra money to pay down your debts). Your goal should be to find at least 10 to 15 percent of your current after-tax income. Apply these extra funds to paying off your debts. You will be pleasantly surprised to see how quickly those bills whittle down and then disappear.
One way to find additional money is by reducing frivolous spending. Many purchases –both with cash and with credit– are made on impulse or for items that are not really needed. Keep track of your spending for two weeks. You will see where your money goes and all the ways you can slow down the wild flow of it out of your hands.
When you track your spending, you also will see habits or patterns, such as expensive lunches, that you can change with just a little effort. And don’t think a few brown-bag lunches can’t
make a big difference. As I said before, a couple of dollars here and a couple of dollars there soon add up to a lot of money.
When people get seriously involved in doing something to eliminate their debts, they often ask: “What do I do if I have an unexpected emergency?” Of course, you should take care of the
emergency. If you’ve been putting extra money toward debt reduction, you may need to lower your payments for a month or two, or go down to the minimum due if necessary. Just make sure you keep all payments current and timely by paying at least the minimum… and then get back on the debt-elimination track as quickly as you can. As your debts become smaller and smaller, you will have more cash to deal with future emergencies.
Another frequently asked question is: “How long will it take?”
The answer, of course, varies in each case. Most people who follow the two keys to debt elimination-stop creating new debt and find 10 – 15 percent of your current monthly debt load in extra money to pay off your current debts-are debt-free in less than seven years. Those who have a comparatively smaller total debt obligation are debt-free much sooner. The biggest determining factor is persistence and discipline. Stick with whatever strategies you use and you will see your debts dissolve.
Now, let’s get working to make you debt-free as soon as possible! I’ve listed some of the best strategies available. Because not every strategy is suited for every person, I have indicated the type of people for whom each strategy will bring the most benefit. This will help you determine which strategies will be best for you.