If you\’re trying to get out of debt, you\’re not alone. Millions of people are faced with a mountain of debt and unsure of how they will repay it. It has been reported that nearly half of Americans spend more than they earn by racking up credit card debt. In fact, the average credit card debt is $8,000 per person.

It can be difficult to get out of debt, but it\’s not impossible. When finances are so tight they require use of credit cards to pay for daily needs it is time to take a serious look at the big financial picture.

A lot of people have debt problems because of long-term unemployment or expensive medical bills. Others have too much debt because of student loans or subprime mortgage loans. But, the primary cause of consumer debt is over spending.

Americans are bombarded with hundreds of marketing messages every day. We have been programmed to buy things we really don\’t need and spend extra on things we do need. In order to overcome debt, we need to reprogram our mind and learn how to avoid temptation and forego impulse buys.

The economic recession forced many people to review personal finances. It has become considerably more difficult to qualify for credit. Millions of consumers have experienced a reduction in credit limits and credit card companies have suspended many accounts. Individuals dependent on credit cards to make ends meet are now in dire straits.

Budgeting is an easy concept that provides powerful results, as long as the plan is followed. The goal is to spend less than is earned and have cash left over to put into savings. Many people are completely unaware of their household expenses. They live paycheck to paycheck and pay bills when they have enough money. This leaves them with nothing if unexpected expenses arise.

To get out of debt requires time, patience, and commitment. It took time to accrue debts and it will take time to eradicate them. It is best to pay off high interest loans first, than work on paying off other debts. It is crucial to not incur new debt while paying old debts because that defeats the purpose.

Tightening the financial belt can be painful at first, but making sacrifices can yield peace of mind later. It can be helpful to view budgeting as a money game where you will be the winner by following the rules.

The Internet is a great source for locating money management and budgeting tools. One trusted source is MyMoney.gov. This government-sponsored website offers an arsenal of tools including budgeting worksheets, college preparation checklists, consumer\’s guides to credit cards, and links to government agencies that can assist with housing, credit counseling, and health insurance programs.

While budgeting is an affordable and result-producing strategy for overcoming debt problems, there are situations where it is not enough. Debtors may find entering into credit counseling a better solution.

Debt can be one of the worst enemies ever encountered. Interest rates, late fees, and penalties can amount to thousands of wasted dollars. Reckless spending can steal your future. Learning how to harness the power of budgeting can place you on the path to prosperity. Which do you prefer?

Author Bio: Are you ready to get out of debt, but uncertain where to start? Author and investor, Simon Volkov shares advice for creating household budgets, paying off credit cards, and negotiating outstanding balances with creditors at www.SimonVolkov.com.

Category: Finances
Keywords: get out of debt, budgeting, pay off credit cards, get out of debt plan, debts, debt problems