 TITLE: How to Get Out of Debt - Experian CONTENT: 2\\. Decide How Much You Can Pay Each Month\n------------------------------------------\nOnce you've listed out your current debts, make another list that includes all your non-debt monthly expenses, such as groceries, cell phone bill, utilities, gas for your car, rent, entertainment, clothing and so on.\nSome of these amounts can vary from month to month, so it's a good idea to take the average of several months. For example, to find out your average monthly electricity payment, add up the total from six months' worth of bills and then divide the sum by six. That's your average monthly electricity cost for the past six months.\nThis list represents basic expenses that you have to pay every month. Now compare this amount with your monthly income, considering only the money you have left after paying taxes and other salary withholdings—your take-home pay or monthly net income. Subtract these total expenses from your monthly income.\nIf the amount you have left over after paying these necessary bills is less than the amount you need to put toward your debt, you'll need to take action. You may choose to:\n*   **Look for opportunities to save.** Reconsider your expenses and consider ways to spend less. For example, if you dine out a lot, cutting back could save money that you could put toward paying off debt.\n*   **Consider debt consolidation.** A debt consolidation loan allows you to compile multiple high interest debts, such as credit card balances, into a single lower interest debt. While debt consolidation can't lower the principal of what you owe, it can reduce the total amount of interest you'll pay over the life of the debt. Reducing interest expenses may make it easier for you to put more money toward paying down the principal of the debt.\n*   **Increase your income.** This will give you more money to put toward your debt. You might get a second job, sell some things you don't need or look for a job that pays more.\nIf the amount left over after paying basic expenses is more than the minimum amount you need to put toward your debt, decide how much additional money you would like to set aside to pay down your debt each month. Remember, the more you can pay above the minimum, the faster you'll be able to pay off your debt. END