Top 10 Tips for Becoming Debt Free

It seems like today everyone would is trying to find the best ways to get out of debt. Here are the top 10 tips for becoming debt free.

10) Stop using credit cards. Credit cards charge interest on every purchase you make. Many of them also charge annual fees and over the limit fees. Some even have a minimum finance charge. If you must use plastic use a debit card or check card. There are no fees for using these if they are attached to your checking account.

9) Pay all your bills on time. Even the utility companies charge late fees if you pay your bill after the due date.

8) Eat at home when at all possible. Going out to eat is a popular way to squander money. It is fun and sometimes necessary but ultimately costs 3 times as much as preparing your own meals at home.

7) Skip those five dollar cups of coffee and two dollar bottles of water. Bring your own homemade coffee drinks and save 1000%. Literally. If you must have bottled water buy it in bulk and bring it from home when going to work or the gym.

6) Look over all your bills. How many of these bills are for luxury items that you really don't use or need? Do you really have time to read that magazine subscription? Do you really need all of the movie channels on your cable bill? This can save you hundreds of dollars per year.

5) Pay yourself first. You should be able to save at least 10% of every paycheck. This money should go directly into your savings account or IRA. By saving a set amount every month you will have peace of mind knowing that you have some cash for the future.

4) If it is too good to be true it probably is. Don't fall for questionable get rich quick schemes that may come up from time to time. Just one of these high risk schemes can wipe you out. Slow and steady wins the race to financial freedom.

3) Don't overpay your taxes. We all must pay taxes but we don't have to pay more than we owe. Hire a competent accountant to help you to minimize your tax liabilities. Every penny you save in taxes goes directly to your bottom line.

2) Don't lend money to friends and family unless you have to. While it may feel good to help out friends in need, it is usually a bad financial choice.

1) Use common sense before every purchase. Try to think about cheaper alternatives to that brand new car or first class plane ticket. By doing this you can save yourself years of car payments and interest payments on those credit cards.