The first thing you need to do is assess the situation honestly. Look at the amount of debt you owe versus the amount of cash flow you earn.  It is not important what caused the debt (divorce, frivolous spending, education, living expenses, etc.) but what plan of action you choose to eliminate it.

Can you satisfy your debt without giving up your home? Again, be realistic about your finances. Should you pay off the student loan or the high interest credit card first? If you are way in over your head and cannot even afford the minimum payments on your debts, you may want to consider bankruptcy. However, if it is at all doable, I suggest you try to pay down your debt and climb out of the hole.

It is time to curb your spending and grow up. This debt did not happen overnight. It took time to accumulate and it’s going to take time to eliminate. When setting a long term budget, think of killing off your smaller debts first; look into loan consolidations, balance transfers and the cost of your daily and monthly expenses. There are many online resources to help you build a budget. This is the beginning of turning your financial ship away from the eye of the eye of that vicious debt storm.

By following these points, you can become debt – free sooner than you know. Once you get the ball rolling, the feeling of paying off debt will be so good you will not want to stop. Living with the stress and burden of debt can drain you emotionally. You owe it to yourself and your loved ones to get this “monkey of your back” and start living life fully once again.