Changing your financial habits will help you get out of debt. It is not a quick or easy process but if you concentrate your efforts, you can enjoy a debt-free life sooner than you think. Below are some tips to put you on the right track right now.

1. Measure your debt.
Some people avoid facing their debt because it is overwhelming and stressful. But ignoring it will not make it go away! Instead, measure your debt and arrive at the total number. This simple tip lets you determine your debt-to-income ratio and points you at a number that you can take from your income monthly to pay your debt.

2. Live within your income.
Depending on how large your debt is, there might be big adjustments waiting for you. Simplify your life to a point where you do not have to rely on credit to make ends meet. Cut all that you can cut to live within your income. Do not make new purchases and do not use your credit card. It will be difficult but super worth it once you are out of debt.

3. It is time to write a budget.
Wouldn’t it be nice to spend every dollar intentionally? Most people think of a budget as boring or a limitation but it is actually the opposite. Writing a budget will allow you to manage your spending and make the best use of your income. You can find leaks in your spending quickly and find more ways to pay off your debt. Who would not want that?

4. Reduce your spending.
The most common reason people end up in debt is they consistently spend more money than they bring in. The simplest way to pay off your debt is to reduce your spending below your income. All of the extra should go into paying your balances. It is not easy because this may mean sacrificing entertainment or other pleasurable stuff but adjusting your lifestyle and having more money in savings will truly make you happier than your daily overpriced cup of coffee.

5. Be honest with your spending.
Some people lie to themselves about wants and needs. You need to eat. You want to eat out. You need clothes. You want to go shopping for the latest fashion. The truth is, the true needs in life are few. Learn how to say no to nice-to-haves and focus on essentials. This is the easiest path to enjoying a debt-free life.