If you're like most individuals, you're probably in debt and are having a hard time making ends meet. Well I feel and hear your pain, there's no doubt about it being in debt is no picnic and can cause a host of emotional and physical pain. Well, one way to clear debt is to take control of your spending and pay it down quickly. In this article, we'll discuss "how to clear debt-solutions to get out of debt fast". Let's begin.

Step 1

Understand how much debt you have.

The first step is to clear debt is to understand how much debt you have acquired over the years. To do so, you absolutely must contact all your creditors and inquire about obligations AND follow up with a credit report. With your credit report, you want to pay special attention to any accounts that are delinquent and any that have been placed in collections as these will be the ones you handle first. Next, you'll want to check for any errors. If you notice that a creditor has made an error, don't just stand by - contact the reporting agency and file a formal complaint. Doing so will improve your credit score and morale tremendously.

Step 2

Get honest.

Now that you have the numbers in front of you, you must get honest to clear debt. Stop hiding from your debt and own up to it. Hiding from it, isn't going to make it go away. The only thing that will make it go away is to stop denying the fact that you are in debt. Stop paying for crap that you can't afford. Instead, get committed to paying it off now. Commit to doing everything that you must do to get the debt chimp off your back.

Step 3

Commit to paying with cash only.

One way that you can show your commitment to getting the debt chimp off your back is to not charge any more debt. This means paying cash and actually saving for stuff that you can't buy right now. By using cash, you'll avoid paying extra interest and won't add to your existing debt load. In addition, you'll feel very proud and excited that you paid for your item outright.

Step 4

Design a budget.

Now that you're committed and serious about becoming debt free, you have to design a realistic budget. Write down your incoming and outgoing funds on a weekly, biweekly or monthly basis. If you can make any cut-backs at all then make them! Now is not the time to feel sorry about yourself and try and compete with the Joneses, now is the time to get serious about your quest for financial peace.

Step 5

Generate extra income.

You must now generate more income. This can by acquiring a raise, a new job, increasing your contractor rates, taking on a part time gig, whatever. The key here is to simply make it happen. You need to generate extra income and you need to do it now. Take that extra income and do not spend it. Instead, apply it to your existing debt.

Step 6

Use the debt snowball.

Once you have that extra income, you need to make you a debt snowball and roll it down your debt hill. You do this by setting aside a certain amount that you can pay each month toward debt in addition to your monthly payments. You then take the lowest amount and apply your debt snowball to it. Then once that is paid off, you apply that entire payment to your next debt until that one is gone too. In no time at all, you'll be debt free.

Step 7

Don't get yourself in debt again.

Once you get yourself out of debt, do everything in your power to never get back in. After all, you know how much debt sucks so simply don't do it.