The inevitable interest rate hikes are just around the corner, which means we will be paying more for pretty much everything. Now is a good time to set your sights on making the effort to get out of debt. Here are a few suggestions on how to do this before it costs you more.

The first thing to do is make a list of every single debt that you owe then rank them in order of highest interest rate. The high rate debt, not the highest balance, should be the first to get paid down.

Get your priorities straight by considering all your options. If you want to have a child, do you really need to take the full maternity leave? Is holding a part-time job an option during University? Perhaps renting instead of buying a home is a better choice for you. Creating a list of immediate goals will give you a start to getting a list of what's important.

Setting a budget and sticking to it is a large factor to getting out of debt. A good rule of thumb to follow when creating a budget, your expenses should be divided as follows: Housing 35%, Debt 15%, Life 25%, Transportation 15% and Savings 10%. This math will help get you started to recovery. If you're struggling to make ends meet, you can help yourself even further by cutting up credit cards. This will help you live on a cash budget and eliminate a monthly bill with high interest rates. Another key factor is to reduce your interest rates. For many people, paying the minimum monthly balance only pays the interest, not the principal.

Another way to save a large amount every month is to stop eating out. Restaurant food costs way more than buying and cooking for yourself at home. Also, it may be necessary for you to be willing to part with non-necessities. In order to get out of debt, you will have to stop buying things like jewellery, music CD's or larger items like summer toys and cars you do not need. Parting with these items will add up to a lot of saved money each month. Remember, the goal is to get out of debt.

Bringing in additional money will be a big help as well. Perhaps starting a small on-line business such as tutoring or selling your hobby of crafts or offering music lessons will help bring in some extra cash. Working overtime will also help. Keeping things in perspective is very important to remain focused on your goal. It will not happen over night so sticking to your list of priorities is very important. If you find yourself in need of a consolidation loan to get started but know traditional banks are not an option for you due to previous bad debt or a bad credit rating, there are financial institutions that offer private bad credit loans. They could be a good start to helping you achieve your financial goals.