Digging Out of Debt
Stacy Case

  In Tonight's Saving You Money report,  I'm helping you keep your New Year's resolution to get out of debt.  The Fiscal Cliff deal still raises the payroll tax which means we'll all have to plan ahead for smaller paychecks.  One way to stay motivated while digging your way out of debt is to focus on what you'll do with your debt freedom.  Maybe you'll take a  vacation, or buy a car or a home or just a pair of shoes.  Plaster pictures of your debt free wish around your home or office to keep you focused.
   Next, replace habits like compulsive shopping.  Some of us do this to deal with anger, frustration and stress.  Instead, try physical activity, even running.  This will help boost your mood with an endorphin release just like shopping except it's free.
   You could also chart your success with a visual.  Every time you pay off a credit card, cut it up and save the tiny pieces in a container.  It's encouraging to see it fill up with more paid bills.  Financial Guru Dave Ramsey offers another strategy he says worked for him.   "We used the debt snowball to get out of debt.  You list the debts from smallest to largest, make the minimum payments on all and you attack the little one with a vengeance.  That gives you some sense of winning. You knock one out. Then work your way down the debt snowball."

  Other ideas include setting a time limit.  Be specific  about how much from each paycheck will  go toward the debt and write down your budget so that you can see it and refer to it daily to stay on track.
   SAVING YOU MONEY: Debt