 TITLE: What Is the Best Way to Get Out of Debt? CONTENT: 1\\. Create a Budget\n-------------------\nA budget can be an effective weapon against debt, and it's one of the easiest ways to tackle what you owe. The primary objective of a budget is to spend less than what you earn—in this case, so you can put that extra money toward paying off debt.\nStart creating your budget by calculating your typical monthly income. If your income isn't consistent, take an average of the past three to six months, and make adjustments based on what you know about your situation. Then look at your expenses from the past few months to get an idea of what you usually spend each month.\nTo help calculate your expenses, first divide them into the two general buckets of fixed expenses and variable expenses. Fixed spending includes rent, utilities and car payments; variable spending includes eating out, entertainment and household items. Use this system to get the most accurate picture possible—and to figure out which areas you might be able to cut back on to free up extra money for debt payment.\nThen make a plan for how you'll spend your money each month going forward, allocating some of the money you'd normally spend in discretionary areas to extra debt payment instead. During the month, keep track of your expenses to make sure you're sticking to your spending goals.\nIf your money situation is so tight that you don't have much discretionary spending, creating a budget may not make a big difference. But it will help you understand where your money is coming from and going to, and show you areas where you could stand to spend less. END