1. Make the commitment.
Make the commitment to become debt-free as soon as possible. Everything starts with a commitment. A firm decision to make truly important changes. It takes a lot of discipline and may require a lifestyle change but YOU CAN DO IT.
2. Itemize your debts.
Create a list of all your debts, balances, interest rates and minimum payments. Calculate your total indebtedness so that you can have a true picture of the situation, then start paying it back starting with the ones with the highest interest rate.
3. Don't incur more debt.
Now that you have started paying down your debt, please make sure you do NOT incur more debts. Debt can be a vicious circle. Unless you’re firm with your NO debt commitment, you may end up circling between more and more debt.
4. Track your spending.
In order to pay down your debt, you'll need to find a way to free up the money that comes into your hand by spending less. Start by tracking all your expenses. Then consciously cut off anything that is not a necessity.
5. Make a budget.
Calculate your annual income and subtract your necessary expenses: housing, transportation, feeding, etc from it.If the sum of your necessary expenses exceeds the 50% mark, try to cut down on those expenses in any way possible.