It is possible for you to become debt free. And you don’t have to pay someone for their services. You can do it yourself. Even though if your situation is bad enough that it seems completely out of reach, if you are wise with your finances, you can do it. Here are some steps to take:

1) Don’t ignore your debt, it will only get worse.

2) Stop overspending. Set boundaries for essential spending and don’t spend on unnecessary things.

3) Generate more income.

4) Manage your credit cards. In fact, stop using them.

5) Create a budget and stick to it.

Being money smart may be simple, but it is not easy. You may know what you need to do, but you may need help on just how to accomplish it.

You’ve already done the first step by reading this information! You are well on your way. You can do this!

Stop overspending. That’s pretty clear and simple. But it’s more easily said than done. Here are some suggestions for you:

1) For starters, make small cuts in your expenses. Go out to eat once a week instead of twice. Or if you’re really motivated to get going on this, don’t go out to eat at all!

2) Take the bus or carpool instead of driving yourself.

3) Shop at thrift stores. You may find that it’s not that bad and be surprised at the good bargains you can find.

4) Buy store brand groceries items.

5) Buy in bulk.

6) Stop buying junk food. It’s really expensive and it’s bad for you.

7) Cancel subscriptions to magazines if you no longer read them.

Do you really need that new outfit?

9) Wait for a movie to come out on DVD instead of taking the whole family to the movies.

10) Trade in that giant SUV for something less expensive to drive.

Generate more income. Who doesn’t want more money? Realistically, it can be done. If there is no possibility of advancement in your job look for another one which better uses your skills and also pays more. That’s a big step and requires a lot of motivation. But you can do it.

If that doesn’t seem possible, you could take a second, part time job. Even a job that is only a few hours a week, can help a surprising amount. Be sure to use ALL that income to pay off your debt.

Manage your credit cards. Again, this is simple, but hard to do. Make this a hard and fast rule: If you can’t pay your bill in full at the end of the month, cut up the cards and throw them away! Then you won’t spend money you don’t have and get even deeper into debt.

Budget your money. The more in debt you are, the tighter your budget needs to be. In creating a budget, there are some key steps to be sure the budget is laid out correctly.

First, list all your income – your paycheck, tips, child support check, alimony, etc. Next, list all expenses – groceries, mortgage, gas, auto insurance, electric bill, clothes, entertainment, etc. Separate the essential expenses from the ones which you can live without. To figure this out, you may need to write down EVERYTHING you spend for one month and then analyze it. Be aware of bills that come every other month or do not come on a regular basis.

Compare the two lists, dollar amount to dollar amount. This might just be enough to realize where all your money actually goes.

Be ready to make adjustments! You’re in debt for a reason — your expenses outweigh your income. There are only two ways to adjust the equation, make more money or lower your spending.