If you read the newspaper, listen to the radio, watch television, or browse online, you are going to run into countless ads, articles, and blog posts featuring how to get debt advice. There certainly is no shortage, but not every piece of financial advice is going to work for you and your situation. Not even all the advice is very good. It can be hard to weed through it all, so as you work to become free of your bills, here are three tips you can always use. No matter what your circumstances, these will help you get started on the right road.

Start an emergency account and a savings account. In 2008, the US savings rate was near zero. The overwhelming majority of us were not saving, banking instead on the value of our homes or living on credit. In 2009, the rate jumped to 6.9 percent. What happened? We were rudely awakened and reminded that living on credit catches up with everyone. People began saving more and exercising more frugal spending practices.

Starting a savings account is essential. You need an emergency fund for expensive car repairs, an unexpected illness, or the loss of a job. It is generally recommended that you have the equivalent of between three and six months’ salary in the bank. If you do lose your job, you have a cushion.

When you are scraping by, having three months’ salary in the bank seems impossible. It is not, and you can do it. Make it your top priority, and save money by cutting your costs, picking up overtime or a second job if possible, and spending more wisely. When you have an emergency fund built up, keep adding to it and contribute to a retirement fund. If you can only put in $10 a week, do it. Every dollar counts when you make a consistent effort to save.

Pay off your highest interest debts first. When you have a stack of bills that seems to grow each day, you need to develop a solid plan for repayment. There is a method called the Debt Snowball in which you pay off your largest balance first and then pay each successive one in turn. You put any extra money you can into the money you owe. When that is paid off, you put that money onto the next. It snowballs.

This can be effective, but you could save even more by using the Debt Avalanche approach. Instead of paying your largest balance, you pay the one with the highest interest rate. It will likely be a credit card. After you have paid that off, move on to the one with the next highest. This saves you a great deal of money in interest you would have had to pay.

Be methodical and keep at it. You may not see much progress at first, but it really does turn into a debt avalanche. If your bills are beyond that which you feel you can control, Impact Debt Settlement can help you develop a program to become free of bills and offer reliable debt negotiation advice.

Live Below Your Means

For decades, Americans lived above their means, relying on easy credit. Since home values plummeted, the economy began bleeding jobs, and credit became far more difficult to attain, we have had to adjust our financial views. Instead of putting clothes, restaurant bills, and vacations on credit cards, record numbers of people began to cut back and use cash. They began to budget and save. This is a great start. Next is to live below your means. Just because you can afford something doesn’t necessarily mean you should get it. Could that money be used in a better way, such as in your emergency fund, savings account, or retirement fund?

You don’t have to stop living your life – and you shouldn’t. But you can benefit enormously from thinking about whether you really need or want something before you put down the cash. New shoes or greater peace of mind; a vacation or security? If you believe the choice is clear, Impact Debt Settlement can help you make it a reality. Get out of debt today.