Rule No. 1 for getting out of debt: make a budget
SEATTLE -- For a lot of people, credit cards have been the way to keep going during these tough economic times -- and now they find themselves in over their head. It can be real easy to get into debt, but the way out it now always clear.
For Jeff , who has climbed Mt. Rainier and Mt. Shasta, he has another mountain looming in front of him: Almost $50,000 in credit card debt.
"I never wanted to be in debt in the first place," he said. "It just happened."
Jeff, who didn't want his last name used, said he used to be debt-free, but started a business and used his credit card to fund the company and pay his bills. He says he also took on some of his ex-wife's debt to help her out.
"You kind of live off credit," he said. "I am basically paying today for yesterday's expenses."
He has a job now with a good salary. He pays a little bit on his credit card bills every month.
But where does all his other money go? He says he has to fly frequently to visit his girlfriend in Sacramento. Between plane tickets and hotels -- a lot of things are still going on the card.
Even though Jeff wants and needs to pay down his debt: "I eventually want to buy another house. I can't do that with all the debt that I have," he said.
Credit counselors say the only way to get your expenses under control is to make a budget. There are lots of ways to make that budget: from a simple tablet to a sophisticated software spreadsheet. The key is to make that budget. You've got to know where the money is going if you're ever going to save more and spend less.
For Jeff , who has climbed Mt. Rainier and Mt. Shasta, he has another mountain looming in front of him: Almost $50,000 in credit card debt.
"I never wanted to be in debt in the first place," he said. "It just happened."
Jeff, who didn't want his last name used, said he used to be debt-free, but started a business and used his credit card to fund the company and pay his bills. He says he also took on some of his ex-wife's debt to help her out.
"You kind of live off credit," he said. "I am basically paying today for yesterday's expenses."
He has a job now with a good salary. He pays a little bit on his credit card bills every month.
But where does all his other money go? He says he has to fly frequently to visit his girlfriend in Sacramento. Between plane tickets and hotels -- a lot of things are still going on the card.
Even though Jeff wants and needs to pay down his debt: "I eventually want to buy another house. I can't do that with all the debt that I have," he said.
Credit counselors say the only way to get your expenses under control is to make a budget. There are lots of ways to make that budget: from a simple tablet to a sophisticated software spreadsheet. The key is to make that budget. You've got to know where the money is going if you're ever going to save more and spend less.
