Make Up Your Mind. In order to clean up your credit now and avoid falling into the same trap once you’re out in the real world, you’ll have to make up your mind now that you want to live a different life and moreover that you deserve to live a life of abundance; not one in bondage to material possessions. Decide today that if the average American lives paycheck to paycheck, you resolve to be abnormal.
Write ALL of Your Debt Out. List each debt you possess along with its current balance owed, interest rate and minimum monthly payment. Once you see it all written out, you can 1. Get over the initial shock and 2. Prioritize which debts you want to tackle first.
Stop Using Credit Cards! If you continue to add to the debt, how do you expect to get out of it? When you use cash, it makes you think a lot harder about whether your purchase is really a necessity. Cut up those department store credit cards and put a major one in a safe place for an emergency or opportunity. DO NOT call the credit card company and close them or you may erase some good history. Remember your credit history makes up some 30% of your overall credit score.