This week I will be doing something a little bit different. The Topic: MONEY! I have a cousin that is off to college and I felt compelled to talk about the importance of money during your college career. Habits formed during this time also has an affect on the rest of your life, so now is a good time as any to start good habits! Besides, in college, doesn’t everyone need more of the green? I hope to show you how!

Debt. Its the one thing that most Americans are afraid of falling into. Yet, America is waist-high in it. In Part 3, we will take a look at debt and how we can get rid of it.

First off, in order to get rid of debt we must know what debt is. In short, its money that we owe. Money owed could come from many sources, such as:

* Credit Card(s) – where a majority of debt for most Americans comes from.
* College Loans
* Home Mortgage
* Car Payments

And these are just a few types of debt that we get into. But not all debt is bad debt. In fact, we need those credit cards and loans to establish a credit history. Withough a decent credit history, we would find it real difficult to: buy a house, purchase a car, or even land a job. So in order for us to attain those things, we need good credit. And in order for us to get good credit, we need to 1) save money and , 2) more importantly, minimize the money we owe. Or, our debt.

The simplest solution for getting out of debt is to tell you to not get into it in the first place. But how simple is that really? For the majority of Americans its difficult. Real difficult. So instead of giving you that advice, we should explore the solutions for getting out of debt.

* Make a list of all money owed, or, list your debt.

One thing that I have learned is that if you write it down. You will remember it. Or at the very least, be able to recall it whenever you need to. To make it easier, open up a spreadsheet and make your list on the computer, then print it out. Write it all down. Credit cards. Mortage payments. Car payments. If you owe money, write it down.

* Calculate monthly totals on all money owed

Say, for the month you have car payments at $300. Insurance is $75. Rent is at $1000. And you have a credit card balance of $500 with a $25 monthly minimum payment. For the month, those bills would add up to approximately $1400. You look at it and tell yourself, “$1400??? I can’t pay that!” And it seems impossible right? Well, lets break it down.

There are four (4) weeks in a month, right? And, lets say you get paid bi-monthly. If we break down the money we owed into smaller amounts, it will make our debt seem manageable. To illustrate my point, here is a really good method of wiping out credit card debt that also applies to the other debt(s) you may have.

* Start paying off your debt(s)

You have the tools. Now start building.

Finally, pat yourself on the back. You deserve it. You are well on your way to becoming debt free.

Tomorrow, Part 4!

Part 1 | Part 2 | Part 3 | Part 4 | Part 5

Disclaimer: The subject and advice given above have been drawn from personal experience, and in no way shape or form should be considered professional. Sources are cited whenever possible and additional information can be accessed online. For more information about saving money, seek professional advice from a financial advisor.