Debt has a way of creeping up on you. A nice dinner here, the sale item you just couldn’t pass up, a car breakdown, and a trip to the dentist, all on the credit card. Just little treats or things that were needed, but there was no cash for them. After several years of this, you find yourself knee deep in debt. If you also, carry a mortgage, student loans and vehicle loans, you may have sunk in over your head.

Get debt under control

Though there are exceptions, most of us find ourselves burdened with debt after years of the debts growing a bit at a time. We’ve lived beyond our means. We’ve not planned for expenses. We’ve sacrificed our future earnings by promising payments with hefty interest, to our creditors. We realize the cycle must stop, but what to do?

First, get rid of the plastic

Do not leave the cards in your wallet, and promise yourself you won’t use them. It will not work. If you are in the habit of using credit cards, you will reach for them again. You must get rid of them.

Cut them up, then you really can’t use them. It may hurt. It may feel like you are losing your best friend, but it must be done. Or if you can’t bear to cut them up, hide them. Put them in a drawer buried deep. I’ve even heard of people freezing them in a block of ice. Either way, you could get to them if you really needed to, but you’d have to time to think about it before using them.

You will read about how credit cards can be used wisely. You may even read about how you can make money by using them. Don’t try it. Simply stated, if you are knee (or neck) deep in debt, you do not use credit wisely. You are probably like me, and do not have the self discipline to keep track and stop using the credit at the point where you could pay it off when the bill comes. You can’t earn money from your credit cards unless you start at a zero balance, use the card, earn the rewards, and pay the balance off every month. Those of us struggling with debt do not have a zero balance. Maybe these strategies will work when we are debt free, and have learned much more about living within our means and self discipline.

Debit cards can be a problem too. If you are overdrawing your account, I’d suggest switching to a cash system. Cash envelopes are a very useful tool.

If you are not familiar with cash envelope systems, the basic idea is to decide how much money you need per pay period for your daily type expenses, such as gas, groceries, entertainment; the things you don’t get a bill in the mail for. You have an envelope for each category, and place cash for the expense in the envelope. When you make your purchases you take the cash out of the appropriate envelope.  You can see exactly how much you’ve spent and how much you have to spend in an instant. You can’t spend more cash than you have.

Look to the past

It is how you got here. It is hard to stop yourself from sliding deeper into debt if you don’t understand where the money has gone and what kind of things you’ve been using credit for. If you use a software program for your personal finances, this is a very easy task. If not, you may need to dig out the credit card statements. Are you using credit for “unexpected” expenses, like car or house repairs? Maybe better planning or a small emergency fund would help meet these expenses. Going out to eat a lot? Buying things you don’t need? Get rid of the plastic, so you won’t be tempted anymore.

Make a budget that is below your means

After looking at where the money goes, the next step is to make a budget. That is a dirty word to some people, but just think of it as a guide to help you stay on the right path. Budgets don’t need to be complicated. Use your past spending habits to start with, and then look a little closer. Where could you trim expenses? Are there things you could cut out of the budget?  How could you find more money to pay off your debts? For more on making a budget: BeNaif: Personal Finance Budget.

To stay out of debt, you must live below your means. You must spend less than you make, and plan for future needs and purchases. To get out of debt, you must choose to live in a way that frees up even more money to pay for all those previous purchases made on credit (and the interest on them)t. You can do that by spending less money (see BeNaif: Save $200 for an Extra Payment for some ideas.) or by making more money (see BeNaif: Make Money for an Extra Payment), Do both if possible.

Make a debt payoff plan

Now that you have a budget you need to make a plan of attack for paying on your debt. Some experts advocate using a snowball effect; paying off the smallest debt first. Others recommend paying off the highest interest rate debt first. Still others suggest figuring where the most money is spent on interest and paying to that debt first. There are advantages and disadvantages to all of them. Personally I like using the snowball effect because I can see the results faster. Do some research and decide which fits best for you.

Be patient

Like improving your physical health, improving your financial health takes lifestyle changes and time.  There is no quick fix or miracle cure. If you find yourself deep in debt, getting out will take change. Implement changes a little at a time. Learn a few tricks to save money, and try something to add to your income. After you have incorporated those into your life, try a few more things.

It took years to get into debt. Depending on your income, the flexibility of your spending, and your willingness to change, it may take even longer to get out of debt. Climbing out of debt can be a long process. Just remember, it will be worth it. Imagine the day when you don’t have stacks of bills to pay, when you don’t see chunks of your hard earned money going to interest payments, and when you can say you are debt free! Little by little you will get there!

About the author: Stephanie lives with her husband and four children in the hills of West Virginia where they are learning to live simply and getting out of debt. See more at her blog, Stop the Ride.