Get Your Money Right: Getting Out of Debt and Staying Out of Debt

Let's be real: most of us have some sort of debt. Be it auto loans, mortgages, credit card and medical bills, or student loans. While bills (electricity, water, etc.) can't be avoided, "debt" can. There are many situations that can put us into debt, but there are also ways to make sure we stay out of it.

First, remember that cash is king! If you cant afford something at any given time, try saving up for it then buying it with cash instead of taking out a line of credit. If you buy a $150 pair of shoes with a credit card that charges 13% interest, and make the minimum payments, those shoes will cost you $163 by the time you finish paying it off. Whereas, if you would've saved $75 every two weeks, then you would have those shoes interest free in a month.

Another rule of thumb is to pay your bills on time. I know it sounds so simple, but we all have been guilty of letting a couple bills slide so we could take a trip or pay for that new outfit. That's just bad business. The quicker you pay off bills, the less interest you accrue and the more money you can save. Seeing the pattern? Bottom line, limiting what you have to pay out will maximize what you can do with what you bring in. For more information on managing and eliminating debt, check out http://www.lifetuner.org/ and http://www.money.cnn.com/. Once you have a handle on your debt, you can get your money right!

- Rico