The start of the year can be very turbulent with many financial challenges and obstacles to overcome.The beginning of the years also comes with its own financial challenges. Below are some tips which can assist you in eliminating the debt burden.

1.Use cash for all your purchases and don’t take on any unnecessary debt.

2.Take stock of all your liabilities.When you know exactly how much you owe to the world.Put them in a spreadsheet, with monthly payments, interest amounts, balances, and a running grand total of all your balances. Update it monthly as you pay off debt, and watch the overall amount go down slowly. It’s very motivational.

3.Speak to a credit counseling service to help work out a plan,your “must pay” outgoings, arrange with creditors to freeze interest and accept a revised monthly payment.

4.Pay minimums on everything, attack the smallest balance with all the extra cash you can assemble, then move on to the next one.

5. Put as much money as you can towards paying down debt and having an emergency fund, but allow for a little bit of. Only the truly dedicated can live with no social/recreational activities for the amount of time it takes to become debt-free.

6.Track your expenses in a software program like Quicken. Categorize your expenses and report out how much you spent in each category so you can easily spot your problem areas (eating out, clothes, gas), then target those for reduction. Always know exactly how much money you have in your checking account.

7.Make a plan.You are better off with a mediocre plan than no plan at all.

8.Examine your expenses and eliminate the unnecessary.Think about gym memberships you’re not using, cable TV, Netflix, other types of subscriptions and see which are least necessary.

9.Pay off your smallest debt first to get the momentum going.Some people go by the rule to pay the highest interest ones off first, but others like the rush from paying a card off completely and closing it. It’s a great motivation to continue.