For some, job layoffs and unforeseen external factors have loaded them up with debt. However, for most, debt is the result of extraneous spending, poor money management, or both.

Here are ten tips to getting out of debt. Some are easier to follow than others, but all are designed to help rid you of your debt:

1. Create a realistic monthly budget for your expenses.

List all monthly bills and necessities and make sure they are covered by your monthly income. Allow use of extra money left over AFTER bills to be used for spending money Stay within your budget guidelines.

2. Make it a point to pay off the credit cards. (that is unless the balance on the card exceeds 50% of the card limit).

First, pay all balances to below 50 percent of the card limit because balances above this level cause your credit score to drop. decrease. Then pay off the balance on the credit card with the highest interest rate. If the account was opened within the past year and you have additional older accounts, close it after it is paid off. Repeat these steps next month with another card. Continue until you reach the credit card with the most favorable terms (i.e., low interest rates). Use this as your preferred account. You need only four open accounts to establish a positive credit history.

3. Pay with U.S. Dollars instead

Have one primary credit card and use it only for emergencies or major necessities, such as a major car repair. Make it difficult for yourself to access your credit cards. Also, do not take increases on your credit card limit above an amount you can easily pay off in three months.

4. Use direct deposit for your your compensation

Put together a set limit of how much money you will allow yourself to withdraw each week.

5. Cut down on your discretionary expenses.

This includes ordering appetizers and dessert, overusing your cell phone, and other such unnecessary expenses.

6. Evaluate your living situation.

Your housing costs should be no more than thirty three % of your household income, including related housing costs. You can shop around for lower insurance rates, refinance your home mortgage, and look for more economical utility plans.

7. Avoid borrowing money to get out of debt.

Many people think this is a way of helping them get out of debt. It is not a good practice to borrow to get out of debt

8. Contact your Creditors and try to work out repayment plans.

Many creditors are willing to work with you in a manner that will help them get their money without having to resort to debt collectors.

9. Become a savvy shopper.

Look for savings. You'd be surprised at how much you can save if you take the time to shop around. Check out the price comparison Web sites such as Shopping.com and BizRate.com.

10. Look for extra ways to make some money.

From part-time work to a garage sale to taking in a boarder, there are many ways to bring in some additional income.

If all else fails, seek out help from a debt reduction specialist or counselors who can help you formulate a plan for getting out of debt and staying out. Just make sure that you check out the service in advance. Many companies are simply taking advantage of people in debt and charging them high service charges.

Debt Reduction Specialists