Now that we have covered all the basics of debt, we would like to offer you some practical guidance and moral support to help you take control and move toward real financial freedom. The most important thing to remember is that being in debt is a real financial condition but it is also a "state of mind." You might be stressed out by questions like: How did I get into this mess? How come I can never seem to pay more than the minimum monthly payment on my credit cards? Why do creditors keep calling me? How do I make sure I can provide something better for my family? These questions are wrapped up in a lot of stress, sadness and maybe even panic and isolation. So, it is essential that as you take steps to improve your financial condition, you ALSO stay focused on recovery and maintain a healthy state of mind. Talk to the people who care about you and get focused on turning your situation around. A clear mind, support from your friends and meaningful goals will get you on your way. In fact, they will get you to financial freedom AND inner peace!

1. Stop taking on more debt
Think about the behavior that got you into debt, and then quit doing all of those things. For example: picking up the tab when you and your friends go to dinner. Go Dutch instead! Or, cook a meal at home. Stop buying yourself fun little things that you don't really need to make yourself feel better. For now, focus on the necessities. Shopping is NOT therapy! We will tell you there's nothing more soothing than the peace that financial freedom will bring you. Now let's get you there.

2. Keep track of your cash
We bet you think you can guess how much you spend each month. But try tracking it. Carry around a pencil and pad of paper and write down everything you spend, when you spend it. Groceries for the week? $30? Write it down. Ten bucks of gas to top off your tank? Write it down. At the end of the month, total everything up and subtract it from what you earned. If you spent more than you earned it is obvious that you must change your spending or your earnings, or both. To come up with a budget, you will divide everything into categories, and look for things you can cut out or reduce. Come up with as many ideas and reductions as you can on your own, and then commit to spending limits in each category. If it turns out that you are spending lots of money on debt, there are professionals to help you. (See #5 below.)

3. Plan for the future
It is time to set some goals. This will create some excitement and some specific milestones on your way to financial freedom. Examples of goals are everything from spending 20% less to asking for a raise; from only brown-bagging it at lunch to making regular deposits into your bank account. As you start to achieve these things, you will see the light at the end of the tunnel!

4. Don't be fooled
Financial freedom will not happen over night. Don't expect miracles and stay focused on your mid-term goals as you make your way to your big goal: financial freedom! Remember to ignore crazy ads that offer quick solutions or to instantly repair your credit. This is going to take your own elbow grease and perhaps the help of trusted friends, family or certified professionals. This mission is not about voodoo — it is about sweat equity!

5. Let the professionals help you
If you don't have personal friends or family to help you — and you feel like you need help — there are plenty of reputable sources. If you need help in dealing with your debts, you may want to contact a Consumer Credit Counseling Service (CCCS). This is a nonprofit organization with more than 850 offices located in 50 states. CCCS counselors will try to arrange a repayment plan that is acceptable to you and your creditors. They will also help you set up a realistic budget and plan future expenses. These services are offered at little or no charge to you. You can find the CCCS office nearest you by checking the White Pages of your telephone directory or by calling from a touch-tone phone 1-800-388-2227 to get the telephone number. However, if you have other questions, contact:

National Foundation for Consumer Credit, Inc.
8611 Second Avenue, Suite 100
Silver Spring, Maryland 20910
(301) 589-5600

or you can go the following web site:

http://www.debtadvice.org/takethefirststep/locator.html

In addition, nonprofit counseling programs are sometimes operated by universities, military bases, credit unions, and housing authorities. They are likely to charge little or nothing for their assistance. Or, you can check with your local bank or consumer protection office to see if it has a listing of honest, low-cost financial counseling services.

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