How To Downsize Your Debt

(SPM Wire) Most Americans spend more than they earn or carry extra debt on their credit cards.

Getting out of debt can seem insurmountable, but can be accomplished with some simple frugal measures.

For starters, set out a budget, encourages debt management expert, Clarky Davis of TheDebtDiva.com.

"A budget is empowering," Davis says. "It's right there on paper… You know how much of your income goes to bills, how much goes to outstanding debt and how much is available for spending."

Here are some more tips from Davis:

Create a debt "snowball." Focus on your highest-interest credit card and pay as much as you can on that card first, while making at least the minimum payment on your other debts. When that card is paid off, add that amount to the next highest credit card and so on and so on. You'll pay off debts faster because you're applying larger and larger payments. You'll save on interest, too.

Pay your bills on time or early when you can.

Keep focused on getting out of debt, but set aside some money to create a savings cushion. Use this for unexpected expenses like car repairs, instead of credit cards.

Keep up your spirits. A recent study found that those who watched a sad movie clip were willing to spend four times more money on an item than those who watched a nature video.

For more tips visit Davis' Web site, TheDebtDiva.com.