Debt causes stress, loss of sleep, illness and marriages to fail. And it simply doesn’t allow you to ever get ahead. Here are 6+1 things to do to get yourself out of debt.

  1. Decide that you really want to. And your partner must agree to work with you on this.

  2. Create an emergency fund of $1,000 as fast as you can. This is important or you won’t do step

  3. Cut up or freeze your credit card since you now have an emergency fund. Why run up more debt?!

  4. Pay cash for weekly living. Each week take out an amount for groceries, petrol and an allowance for you and your partner. Then you can never overspend. This will save you THOUSANDS!

  5. Pay off debt smallest to biggest Ignore interest rates. List all your debts in order of size and pay them off smallest to biggest. This allows you to cross them off and gives incentive to keep going.

  6. Sell stuff. Use Trademe and garage sales to sell anything you can find. Use this to pay off debt.

  7. And the extra 1? That is to give your family a backup in case something strikes you health wise before it’s all paid off. This is life and disability cover so all debts can be paid for your family if you are not able to work or you die.