“Dear Steve,

I’m in debt really heavy from credit cards and other loans.

What should I do to get out of debt.

Lourdes”

Dearest Lourdes,

Wow, I really want to help you with some great advice and awesome guidance but gee-whiz a little more information would be really helpful. Maybe next time you write in you can share a bit more, please.

Based on what you told me, here are some things you can do that will cover the basics:

• Reduce Expenses – Use extra money saved to pay down your debt.
• Increase Income – Get a new job or a second job to help bring in more money to pay down the debt. Look on the job board or job bank page for a new job in your area.
• Maybe Consider a Debt Management Company – If you are just paying the minimums you might want to take a look at a debt management company to see what debt reductions they can offer you. Warning: It will hurt your credit.
• Save Extra Cash – Before you start sending all your extra cash to the credit cards and loans, save it up in a savings account so you’ve got emergency cash available. At the end of the year you can use some of your cash to then pay down the highest interest rate debts or smallest balance debts, whichever gives you the most emotional satisfaction.
• Bankruptcy – If you are unable to pay your debts and you’ve done all of the above, maybe now is the time to get a free bankruptcy review from a bankruptcy attorney in your area.

Keep us posted on what happens.