The up & down economy has everyone scared. You might be asking what everyone’s asking: How do I clear this debt? How do I climb out from under this pile of credit card bills? The answer is easy and hard. To clear debt, you first have to change your relationship with money. It is easy, but most people find it hard. Here are some ways to change how you feel about money.
Change how you view money. How do you think about money? Is it scarce? Is it the root of all evil? Will it solve all of your problems? You need to think of money as your friend. You love your friends; you would do anything to save them from a life of wasted potential. Money is no different. To say that you love money doesn’t make you greedy, shallow or evil. You should be on friendly terms with money and understand that it can do things to help you, if you don’t waste it. So, stop thinking about the lack of money. Instead think about how to make the most of the money you have. 
Create a budget. If you are serious about eliminating debt, there are some clear debt solutions. The first one is to make a budget. It sounds hard, I know, but think of it as naming every dollar. You are giving each dollar a job to do and that is exactly what money needs:a purpose. For your budget, start with the basics of life: food, clothing, shelter. By food I mean groceries; by clothing I mean essentials like pants and shoes and by shelter I mean a place you can afford, a place that costs no more than a quarter of your paycheck each month. Now, how much is left?
Face up to your bills. The next step is to face your bills. Get out all of your bills — lights, heating, gas. Get out the car payment and the credit card statements and the student loan bill. Most American do not want to face their bills head on. So much better to juggle minimum payments and justify expenditures. You had to eat out three times last week. You had to get a new coat. Those thoughts fight with thoughts that say I have to clear my debt. Which thought wins is up to you. When you have all the bills on the table, order them from smallest debt to largest. Now take out your car payment. Is your car payment more than ten percent of your monthly paycheck? Then you need a cheaper car. Your money is being wasted on too much car.
Add it all up. So you have all of your monthly expenses in front of you. Add them up, using the minimum payment on the credit cards for now. Is there any money left over? If the answer is No, then you have to go back over the expenses. What can you cut? The gym membership? The weekly latte? You want credit card debt relief, right? This is how you get it. So find at least two things to cut from your monthly expenses. The good news is in about a month you will be amazed that you thought you couldn’t live without it. The other good news is that you are creating your debt snowball.
A debt snowball is debt help you can use. These days there are lots of ads for debit consolidation. You don’t need someone else to fix this problem. You spent the money and you can pay the bills without anyone’s help. You want debt help? Work your budget so that you have $20 or $30 or $80 leftover at the end of the month. This is your debt snowball. You pack that money on to the payment of your lowest bill. Every month you pay the minimum payment plus the snowball amount. Let’s say your lowest bill is a small credit card balance of $200 and it has a minimum payment of $35. If you didn’t charge another dime on it and you had a low interest rate, you’d have it paid off in 6-7 months making the minimum payments. With an extra $30 each month, it will be done in 3-4 months. And when it is done, you take the $65 (the original snowball plus the minimum payment) and apply it the next smallest debt.
Now your money is working for you. Now you have every dollar named and all of it is working for you, to help you achieve your goals. This is how rich people think about money. They know that it is a tool to help them do what they want in life. When you change your relationship with money, when it stops being combative and become collaborative, your life changes. 
A debt snowball is just one idea. There are lots of good ideas out there. Look online; talk with debt busters, people who have taken this journey. Follow their steps and in a year or 18 months you will be debt free. Better than that — you will have a different relationship with money so that you are debt free and fear free.
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I completely agree creating budget is inevitable. Managing our finances better and living within our means is the ideal way to get out of debt. Thanks for sharing.