 TITLE: How to Pay Off Debt in a Year CONTENT: Create a Budget and Stick to It\n-------------------------------\nNow that you know how much you owe, it's time to establish a budget. A budget gives you insight into your spending and can keep you on track toward paying off debt within a year. Here are five steps for setting up a budget.\n1.  Look at your monthly take-home income. If your income remains the same each month, you can find this figure by checking your most recent paychecks from the prior month. If your income changes from month to month, add up your income for the past three to six months and come up with the average monthly total.\n2.  Examine your expenses. Check your bank and credit card statements for the past three to six months to pin down how much you spend on a monthly basis.\n3.  Categorize your expenses. Put your expenses into categories. Categories could be broad, like recurring monthly expenses, or narrow, such as rent, utilities and insurance. You'll probably want to put discretionary (optional) expenses, like dining out and travel, into specific categories.\n4.  Establish financial goals. Since you're trying to whittle down your debt within a year, your priority should be to decide how much money you're willing to set aside each month to wipe out that debt.\n5.  Monitor your spending. To reach your financial goals, you'll want to track your spending. To accomplish this, you can use a budgeting app like Mint or You Need a Budget (YNAB). Or you might opt for an old-school method like a spreadsheet or good old pencil and paper. Set aside a certain time each week to review and categorize your spending. END