My ideas on how to become debt free

People do not worry about debt until it is staring them in the face. Most people do not have any idea as to the total amount of debt that they owe, or which creditor is the main culprit for their financial demise.

The first sign to debt trouble is getting into the habit of paying for groceries with a credit card. All food shopping should be paid for in cash and never on credit. The only time grocery shopping should be paid for with a credit card is when rewards are earned and the total balance of the statement is paid at the end of the month.

The second sign to debt edging nearer and nearer is when an individual cannot afford to pay off at least twice the minimum payment each month. Paying only the minimum amount will not keep creditors at bay, as the balance of what has accrued is never reduced, and payments only satisfy the interest on the account.

The third sign to debt demise is when eyes light up at the fact that a credit card company have increased the credit on an account. This should not be seen as a gift from the creditors but as a crafty way to make a customer spend twice as much than they are used to. Remember, creditors do not care if someone ruins their credit rating.

The fourth and final sign is when bills are ignored in the hope that they will go away. Even if there are only a few pounds outstanding on an account, it still has to be paid or black marks will appear on your credit file which will jeopardise chances of any future credit.

Its quite exciting writing my first post about my journey out of debt.

My first and probably the most fundamental message is knowledge is everything.

The more you know about your situation and the advice you get from others in similar situations, the more likely you are at solving your debt problem.

1. Understanding how to