Generally speaking, Americans put themselves into debt because of overspending. Sure, there are some extreme circumstances like medical emergencies, loss of a job, and divorce, all of which can put a person into a financial spiral. But for most Americans the root of financial trouble is simpler (and fixable!): overspending.
Whether it's the holiday gifts (Christmas and Hannukah are obviously big ones, but Valentine's Day and Mother's Day add up too) or small indulgences (a trip to the local coffee shop or a nice dinner out), Americans regularly spend more than they really can because they feel like they “should". You are likely one of these people.
If you are, and if you are in debt, you need to learn to live within your means. Failure to do so will ensure that you remain in debt. You need a plan and you need to live by that plan.
What kind of a plan do you need?
Well, at the very least, your plan should start with a budget. I know you don't want to hear that. You're an adult. You work hard for your money. You should have a right to have some fun and spend it how you want. Right? That's what you're thinking isn't it.
Then why are you in debt?
You are in debt because you can't control your spending without a budget. Put a name to every dollar before you spend it. For instance, these dollars are going to the rent (mortgage). These dollars are going to my car. If you know you need to fill a prescription next month, set aside the money for it from the paycheck you will receive closest to it. Put a name on every dollar. By doing this you can ensure that you don't put yourself into any more debt than you are already in. This will allow you to dig yourself out of debt even faster.
Michael M Thomas paid off over $50,000 in credit card debt. You can learn how Mike did it by reading his blog . Mike's Credit Card Debt website also provides a free newsletter which regularly provides money saving tips. You can learn more about it and sign up for the newsletter here .
If you are serious about getting out of debt, you should consider a product like Debt Free in Three. Mike talks about Debt Free in Three on his blog .