One of the best things that a person can do for himself or herself is to get their finances in order. Eliminating debt is not an easy task, but it is going to go a long way toward less stress and more fun. There are a number of books and websites that purport to have the magic bullet to end debt. The sad fact is, the only way to kill debt is to slowly and consistently pay it down. It does not happen overnight, but if you are committed it will happen. Debt does not just appear and it will not disappear instantly.

The first step toward eliminating debt is to stop going into debt. Do not spend anything else on things which are not necessities. Do not make any big purchases while you are creating a plan. Hold off on any large expenditures and concentrate on identifying your debts. The next thing to do is put your debts on paper. It may be somewhat startling to see the exact debts that you have, but putting them all in black and white makes them identifiable. One you have done this it is time to formulate a plan. It is difficult to come up with a new way of paying bills and handling finances.

The plan is one of the most important things you will do. It is important to be honest with yourself about how long it will take to get debt free and how many sacrifices you will have to make in the mean time. Setting short term goals is a good way to feel like you are accomplishing something. Another step that can aid in the reduction of debt is to refinance certain loans in order to get a better interest rate. If your credit is good enough, refinancing a car or other loan can produce excellent results and save you money in the long term.

In truth, the only way to get out of debt is to follow these simple rules. Number one, do not go into more debt. Number two, spend less money than you make. That may seem simplistic, but it is very true and probably harder than it seems. And number three, use the difference to pay off the debt that you already have.

If you follow those rules you will get out of debt. How long it will take depends on how aggressively you save and how aggressively you pay down your existing debt.