The process of how to remove debt from your life is in the first instance about cataloguing your debt, prioritising your debt in the sense of which items should be repaid first and finally about developing a sensible budget plan which will allow you to remove debt from your life at the earliest juncture.
Cataloguing your debt is about identifying each item of debt in your life and the precise extent and nature of it. This should be achieved by gathering together all the most recent credit card statements and obtaining up to date repayment quotations for any loans which are outstanding, together with the rate of interest presently being applied to them.
Once all this information has been collected and obtained, a careful list should be made of the amounts outstanding on each debt item, the interest rate being applied and the minimum monthly repayment required to service them. It is then a case of looking at which item on the list is attracting the highest level of interest and deeming to make that particular debt the priority for repayment. This is in order to most effectively reduce the amount of interest which is compounding the outstanding debt each month.
It is then time to look at the household budget in a very careful and even ruthless sense. Every item of expenditure which is incurred each month should be identified and examined for ways in which to either eliminate it or reduce it. The amount of money which can be saved on such as the grocery bill each week or month is staggering if it is considered carefully enough. Buying products which are not brand names, eliminating what can be deemed to be luxuries, or even changing supermarket altogether can produce substantial savings in this way.
When the savings have in turn been identified, it is time to produce the new budget. Income must be balance against all the expenditure and the extra savings targeted towards what has been deemed the priority debt. Once this debt has been eliminated, it will be a case of looking at the debt with the second largest interest rate being applied and diverting the extra money to it in the same fashion.
It may prove to be a very lengthy process, eliminating debt from your life, but it is one which the sooner you start, the sooner you are going to achieve it. Putting it off until tomorrow will only allow the amount of outstanding debt to further increase and make the whole process both a longer and a more painful one.