Getting out of debt is not a dream but a reality which you can achieve by following some simple yet effective steps.

First and foremost, reduce your monthly expenses. In every category of your monthly expense, there is scope of reduction. Use your electrical appliances optimally, purchase grocery items intelligently, have food at home instead of at restaurants, avoid purchasing unnecessary items and you find a considerable saving in your account.

Increase your income. You can do this by earning more from your present job or by switching to a higher salaried job. However, your source of income is never restricted to your job alone. Earn money by selling your unnecessary items, by arranging a garage sale or from your existing investments.

Get into the habit of repaying your debts as soon as you have some extra money. Choosing the right debt account for earlier repayment is very important. You might be tempted to pay off your smallest debt account earlier to get the mental satisfaction of reduction in the number of debt accounts. However, it is better to choose the debt account with highest interest rate for earlier repayment. It saves you money in the long run which you would have otherwise paid in the form of interest.