Here are few great debt elimination tips.

# Don’t get into debt. Use cash for all your purchases and don’t take on any debt except home and auto.

# Spend less than you earn.

# When debt is closed out, put 60% in savings and enjoy the remain 40%.

# Take stock of all your liabilities, so you know exactly how much you owe to the world. Put them in a spreadsheet, with monthly payments, interest amounts, balances, and a running grand total of all your balances. Update it monthly as you pay off debt, and watch the overall amount go down slowly. It’s very motivational.

# Have only one credit card with a low limit, and only one loan with monthly payment not exceeding 25% of income.

# Build up an emergency fund first. If you come into extra money (tax returns, etc.), use it to build an emergency fund and pay off debt after that.

# Cut up your credit cards.

# Speak to a credit counseling service to help work out a plan: your “must pay” outgoings, arrange with creditors to freeze interest and accept a revised monthly payment. Warning: a reader informed me that using a credit counselor will show up on your credit report and adversely affects your FICO score — not as bad as a bankruptcy, but it is coded, and lenders can see it. Only exercise this option if you’re really in dire straits.

# Stop using credit cards to make it to the next paycheck. Stop getting further into debt.

# Don’t overpay your debts — leave enough so you have enough for regular expenses too.