Get Out of Debt
The first thing you need to do is get your debt as low as possible. This will allow you to pay off your debt faster. Many companies are concerned that they will never get you pay off your debt, so they will be happy to extend you better terms (called debt negotiation) or even to take a reduced amount (debt settlement) just to be sure they get some of their money back. In debt negotiation or debt settlement you, or a professional debt negotiator, work out a new debt amount. You can often get them to take only 60 to 70 percent of the original loan. Even if they won't take a lower payback, they may often allow you a lower interest rate. Either way you both you and your lender can come out better with a proper negotiation. Don't be afraid to explain your money and credit situation.
You can also consolidate your debt through debt consolidation. This is where you basically take out a lower interest loan and use it to pay off all your higher interest loans like credit cards. DANGER! DANGER! There is a real danger with debt consolidation in that you will then have payed off credit cards. If you do consolidate your debt, you should cut up your credit cards. They will be a temptation and you could end up further in debt than you were before debt consolidation. I suggest that you first renegotiate your debt. Try to get your debtor to agree to a lower payout and a lower interest rate. If this doesn't work, then look into debt consolidation.
This first step is really only for people who are in serious debt and have no other options. If you've reached the point where you simply can't pay your bills, it is an option. But be sure to check with a financial advisor. They will know if this step is something you should consider.
This sounds simple, but to control your expenses you first must understand what they are. The only way to be sure you know what you spend is to record everything. This is hard to do. Then you will need to do something even more difficult, SACRIFICE. Live on a BUDGET. Ouch, people hate those two words. But it will take sacrifice to get out of debt. The good news is that it will be worth it. Every time you make a sacrifice and stay on budget you will be investing in your future. Always keep that in mind. Every step you make towards getting out of debt means you are closer to having your money work for you.
Although you can not really control your housing and transportation costs on a day to day basis, you still need to take a hard look at your housing and transportation to see if you can cut costs. The first thing is to try to renegotiate. Maybe you can lower your rent. Just ask. Also, get quotes for your insurance on both your house and your car each time a renewal comes up. This can save you good $'s.
The major expenses you can control on a day to day budget are:
Download Free Budget Tracker Software
Free Gas Mileage Tracking MPG Software
Step #1: Renegotiate debt, consolidate debt, and settle debt
4) Start investing in 401k plan or IRA
Holding Loser Investments and Stocks
Not saving for Retirement