The battle against growing debt is a challenge for many individuals and families. Building up debt is easy with interest rates, late fees, overdraft fees and other additional costs that are added to an account. When it seems that debt is starting to get out of control, it is time to take action to eliminate the problem.

Getting The Tools You Need To Control Debt

While it is not possible for every individual to take courses in debt management, the basics of eliminating debt are the same for just about everyone. Debt is eliminated by organizing personal finances and getting individual spending habits under control. By spending less, more money is available to pay down debts.

Tools are available to help organize the financial data and create a budget that will improve spending habits over time. Applications and online tools are particularly useful when it comes to debt elimination.

DoughRoller suggests using free online budgeting tools to organize necessary expenses and identify harmful and sometimes overlooked spending habits. Online tools range from simple fill-in-the-blank templates to Excel spreadsheets that make it easy to track spending, identify patterns, and keep up with bills before the due date. When using Excel spreadsheets, it is usually best to find an online backup system to avoid losing the budget in the case that your computer crashes or there’s an emergency. If you’re attempting to track many different recurring expenses, making sure your budget is safe is integral. An online backup will ensure that even if the original template and budget is lost, a copy is still available.

Budgeting tools online allow individuals to keep up with spending by filling in their specific information. Fixed expenses, like rent and insurance payments, are automatically added to the next month in most online systems.

Applications for phones are also useful tools to get out of debt. The apps allow real-time entries of spending while on the go, so it is easier to find out when and where unnecessary spending occurs. Lisisoft has many helpful apps for debt control.

Basics of Reducing and Eliminating Debt

Owing money to any creditor can lead to stressful situations. Whether the debt stems from student loans or it comes from credit cards and a mortgage, it can easily get out of control if it is not managed early. Understanding the basics of reducing debt is part of using applications and online tools to their maximum potential.

According to HPSNJ, the basic method of getting out of debt starts with income and necessary expenses. It’s impossible to reduce debt without first knowing how much money will come in each month and then organizing where the money is spent. Necessities like rent, groceries, insurance and (at least) minimum debt payments are the expenses that should be automatically subtracted from income each month.

It is only after determining whether the expenses exceed the income or if money is left over after the necessities that making a plan to reduce debt is possible. The plan should work on finding ways to reduce spending if the necessities do not leave any funds available for additional payments on debts.

Debts that start in college, such as student loans, are especially challenging to manage. According to the Indiana University News Room, student debt is a problem that requires education. The rising cost of college combined with students who do not fully understand the loans used to pay for their tuition can result in debt growth that is hard to manage even after getting a full time job. The colleges are beginning to recognize that students need education in personal finance and have begun implementing programs to help prevent high debt problems in the future.

Getting out of debt requires budgeting and careful planning. By paying more than minimum payments to creditors each month, it is possible to slowly work off the debts. Ultimately, debts can be eliminated with the appropriate tracking tools.

Joey Ader loves talking about the ins and outs of financial situations. He is a freelance editor and writer in the finance niche.

It can be very difficult to stay the course of becoming debt free. For the past few months, I confess that it has been tough. For example, for a few weeks I didn’t reconcile my budget, I am behind in reconciling my checking account statements and I made some impulse purchases. However, yesterday I got a letter in the mail confirming that a bill (a mid sized bill) was paid off and I owed no more. I should be very excited. Yet, I admit I am daunted. I compare my debt to my goal of paying all debt off this year and WHEW there is leap of faith required. I have ideas on how to eliminate my debt but I haven’t been working my ideas. I let obstacles and little inconveniences get in my way.

Today I had to remind myself of the goal and the plan. I acknowledge that reminding myself and affirming my goal has to be a daily exercise until I achieve the goal. So what is the goal? My Goal: The be financially independent. This means first and for most to have no debt. Secondly, it means having a savings and retirement accounts. Finally it means has other sources of income besides a job or business. How do I become financially independent? Below is my game plan:

1. Take an honest look at my finances and make corrections, one at a time.
2. Determine what financial independence looks like to me (how much in savings and retirement accounts).
3. Get a clear understanding of my debt.
4. Get financial house in order.
5. Create and stick to a budget for every paycheck.
6. Get rid of debt.
7. Fund savings and retirements accounts.
8. Buy a home.
9. Figure out how to have an income with out a job.

After I reminded myself I tackled a project that I have been putting off for months. Honestly, this has been an ongoing project that ebbs and flows for years. This week and into the morning light, I inputted receipts in my accounting software and filled them away. FINALLY my desk is clear and I am done with project ONCE AND FOR ALL. Now I can run reports with some certainty. Now I can see what is really going on with my money. Now I can train myself to make my money behave. Tonight I shall sleep well because I made progress, I am keeping my word to myself (even if it took years), I decluttered my desk and most importantly my financial house is just about in order (Step 4 just about completed).

If you are having challenges sticking to your plan please share and together we can over come. Otherwise please share your comments. It is a few days before July, halfway through the year, and we can become debt free this year no matter the amount we owe.

You see for me the way passion was described by gurus and regular folk just seemed in the end like a great work ethic. I felt this way because what I was passionate about didn’t just reside in one topic or vocation, it rested in several places. So either I wasn’t passionate or passion was really about having the staying power AKA a good work ethic.

Then 2 days ago I woke with a headache and I thought it was stress related. I asked God what am going to do now? His answer was still the daily South African references (going on 5+ years now), an old bra customer calling because she is in desperate need, me attending a travel event at the last minute and while at the travel event my other interests (women entrepreneurs in developing counties and chocolate) were all highlighted. My headache was worsening. I felt like my interests were all neon lights competing for attention like the lights of Las Vegas.

Earlier that day, I asked someone one’s opinion about the daily references to South Africa and why when I ask God to close Sculpted Silhouette he sends another customer (new or old). He said just talk to God again and speak the scriptures out loud.  On the way home from the travel event I asked my mom again for the one billionth time, “mom what is my passion”. Her answer was “you seem to want to create jobs as well as create businesses”. In my head I said, oh yea the other must have for my professional life, more added on not taken away, ARGH!!!!! So while coasting up the street heading home, I asked God and my mom “what is the name of what I am supposed to be professionally that combines all these interests?” Once I got home I felt inclined to find a book I used previously for finding/defining my passion but found another book that been recommended to me, “As a Man Thinkith” and read it. Before I feel asleep my headache went away.  AAHH

The next morning while checking emails and I signed up for a life coach’s b-school newsletter. That took me to a video where she said she was a Multi Passionate Entrepreneur. Umph (like Scooby Doo). Then she proceeded to describe her life and how finding a singular niche just didn’t work. Some way she has figured out how to balance and combine her interests professionally/entrepreneurially. She thrived and the money followed!  Finally an answer. By no means has the process of being “this person” come to me but just the idea that there is a title, a name, and someone else in this big world being it/doing it. RELIEF and CONFIRMATION. I am not crazy, scattered brained or any other descriptor implied by what are you doing now? Then I reviewed her website and lo and behold the way she set up her navigation headings brought on more clarity. YES, YES and YES. Paraphrasing President Obama, Yes I Can!

I am Lorne Shelby Wellington and I am a Multi Passionate Entrepreneur. Thank you God for the answer now let’s get busy.

In my book, I dedicated a chapter to preparing before growing your business. It is important to grow your small business but make sure it makes dollars and cents.

As many as I need and can do to pay off my my debt. Currently I have 4 entrepreneurial endeavors. They are bookkeeping, janitorial, Avon and a side retail thing (I will share more on that at a later time). I am doing everything I know how to do well because that is how bad I want to get out of debt.

Trading Time For Money

Yet trading time for money is over.  I don’t have anymore time to trade. As of today I have decided no more bookkeeping clients. I will continue to provide the service to my existing clients but i just can’t take on any more. This is Good News to me.

Now I have to consider other options, like eBay. I put something up on eBay yesterday let’s see how it does. If there is anyone who is a successful merchant please contact me, I need help.

Accountability Update

This is the bad news. I am still over budget every month. So for the rest of March I shall do nothing but pay bills. A lot of the over budget are my customers being slow payers and bank fees. Now for the really bad news. I bounced a check, ARGH! So now I have to sit down and really see where I can improve my disciple and spending.

To find out if my item sold on eBay or to read the latest post in the Become Debt Free Series, click here.