We’ve all heard it. Debt is bad. It’s a burden. Pay off your debts as soon as you can. Do we really understand how debt is bad? Why is it harmful? More importantly, why should we get out of it fast?

Constant Stress: Owing someone large amounts of money causes stress. Knowing you have to return it one day soon does not make for peaceful sleep especially when you can’t afford to pay back the debt if the creditor came looking for it today. Constant stress is also bad for health. Not only are you ruining your financial future by staying in debt, you’re also putting your health at risk,

No Savings: It doesn’t help your debt situation if you have no savings. Nor does it do any favors for your peace of mind. If you’re drowning in debt, it’s safe to assume you barely have any savings or else you would have paid it off by now. Imagine if, God forbid, some emergency came up that required you to pay large amount of money. What would you do then? You have no savings and you’re already drowning in debt. It’s the kind of scenario worst nightmares of made of; all the more reason to get out of debt and start saving for a rainy day.

You’re owned by creditors: When you owe someone money, whatever you make or save is not yours. Every penny is owned by your creditors. That in itself is enough to take the joy out of your work, leaving you unsatisfied with your life and job.

The Curse of Interest: You’re paying extra money in the form of interest. You may be paying off the minimum payment on your credit cards but that’s useless if you’re not paying any of the actual debt. Instead of paying off your debt, you’re wasting precious money you could be saving by paying interest. It is always important to pay more than the minimum payment so you get some of the debt out of the way.

Living outside Your Means: Debt isn’t all bad as long as you’re living within your means, can pay off your monthly installments and still have enough to save. However, usually people who have debt are living beyond their means. This is probably why their credit card bills have climbed high. While you’re in debt, the amount you need to pay it off could be money you were saving or meeting other needs you are ignoring.

The number one reason to get out of debt is to be able to live within your means again and to better plan your finances so you never fall in the debt trap.

Nowadays, everyone is trying to cut back and save a little or more likely, save a lot.

While it can seem difficult finding money to save, by carefully scrutinizing your spending habits, you are sure to find some easy dollars you can round up.

Think DIY, or “do it yourself”. Get up and brew your own coffee and grab breakfast at home. Wash your own car, mow your own grass, iron your own shirts. You get the idea.

Visit your public library and check out books, magazines, DVDs, computer games, and CDs all for free.

Wait longer periods of times between appointments for services such as haircuts, manicures or massages. If you normally go every 4 weeks, go every 6 weeks instead. Or better yet, forgo some of this services altogether.

Turn up or turn off the air conditioning when you are not at home. It is easy to cool an average sized house down quickly.

Carpool, bike or walk wherever and whenever possible. Gas is not cheap, so every time you don’t drive, the savings add up fast. Plus, if you ride your bike or walk on foot, you are getting great exercise which can save you more money as you will no longer need that gym membership.

Pack a lunch each day for work instead of eating out. You can easily save an average of $30-40 a week by brown bagging it. Stock up on snacks and keep them at the ready at your desk too. Snacks can be bought in bulk for a fraction of what you fork over to a vending machine. Same goes with sodas and drinks.

Buy store brand instead of name brand for a great amount of savings. Store brands are typically 20-60% cheaper than the equivalent name brand. Buy in bulk from wholesale clubs or shop on sale. Stock up on non-perishable items that you use often when you find them at an extra low price.

These tips are just the beginning. If you follow them and continue to evaluate your spending, discovering even more ways to cut back, you will find yourself with a full piggyback in no time.

Frugal, as defined by the Random House Dictionary is “Economical in use or expenditure; prudently saving or sparing; not wasteful.”

Now this means to be a frugal homemaker you have to be a person who thinks before they buy something for the house. It also means you are a homemaker who uses what is already on hand for a different purpose than it was originally intended.

Let’s look at some ways you can be a frugal homemaker:

Plastic Store Bags – If you haven’t jumped on the expensive “going green” bags at stores and you still just get the little plastic bags, you probably have a lot of them. Most people just throw them out but you can use them for other jobs. If you have any small trashcans in the house, these are a perfect fit. Got a cat and have to scoop litter? Dump it in one of these bags. They also work great as a pooper-scooper bag for your dog.

Milk Cartons – Just about everyone has these in their house and they can serve a number of other purposes once the milk is gone. You can keep another one in the car full of water in case of emergency. Another way is to use it at a flower watering pot or cut one in half and use it as an actual flowerpot.

Old Clothes – Turn them into new rags with a couple of snips. If you know how to sew, you can take them apart and make new things out of the good fabric.

New Clothes – If you have growing children, get their clothes, (especially pants) a little too long and hem them up. When they get older, let out the hem for continued use.

It’s not just about the things you purchase and how you reuse them; it’s also about using what you already have on hand instead of buying the same thing repeatedly:

Mixes – You can make pancake mix at home and it’s super easy. It takes about 5 minutes and can last months in your cabinet. You probably have all the ingredients to make the dry mix already, saving you even more money.

Food – Only cook what you plan to eat during the sitting. Don’t make food for six if you are only feeding four. People forget about leftovers all the time and they end up in the trash.

Energy – Turn the thermostat down, for every degree below 72, you can save 2%-4% on your heating bills. Turn off lights you don’t need, get energy saving bulbs and make sure you windows and doors are tightly sealed to prevent air being lost.

Washing Clothes – Only wash clothes when you have a full load for the washer. Don’t wash half-full loads, because you will use more electricity, water and detergent per item in the wash the fewer things you have in a load.

Those are just a few ways to get you started being a frugal homemaker and to help you save a little money in everything you do.

Everyone has debt but not everyone knows how to clean it up. Here are ten ways you can clean up your debt and still afford to a little of life’s luxuries.  Also get our FREE report!

1. Get a copy of your credit report. Using the report, you can find out if there are any incorrect entries on it and have them removed. Remember, you need to look at the reports from all three reporting agencies: Equifax, TransUnion and Experian as there may be different information on each one. 

2. Get Your FICO Score: These agencies also keep a FICO score listing for you. Many credit companies will look at your FICO score when determining whether to issue credit or not.  

3. Review your credit history very closely: Sometimes strange things can show up on these reports. The creditors are quick to make sure anything detrimental you do is reported on there; however, they are very slow at removing any mistakes they make. You may also find some things that aren’t even yours and are being reporting incorrectly. 

4. Make a list of your debt: Write down all of your current debts, how much they are and to whom they are being paid. Once you have this information, you have to decide which are the most important and have to be paid such as mortgage, power, car, and so on.

5. Call your creditors: If you are having problems making payments, you need to call your creditors to try to get a lower rate or renegotiate the bill. Most agencies are very willing to help you because they want to be paid and they realize payment arrangements may make the difference in whether or not they receive any money at all.

6. Pay down the highest interest debts first: If you have two credit cards and one carries a 9% interest rate and the other only 4%, make sure to pay the 9% rate first. This one will cost you more money in the long run and getting it paid first will help you be able to pay other bills down the line. 

7. Pay everything on time: Even if all you are paying is the minimum payment, at least you are making an on-time payment. When you are late, it shows up on your credit report and can adversely affect you in the future. If you can’t make your payments on time, call your creditors and they will most likely work with you. 

8. Don’t max out your cards: If for some reason you are unable to make a payment, late charges will drive you over your limit, which is not a good thing. This will add additional ongoing charges, raising your total bill. If you get into this situation, call you creditor and   find some way to work with them. 

9. Don’t have too many cards: Having too much available credit is as bad as having no credit at all. The possibility of going into serious debt in a day can hurt your rating. Limit the number of cards you have to no more than three, if possible.

10. Don’t share credit with someone else: This means don’t co-sign with someone else because if they fall behind on payments or stop altogether, you are stuck holding the bag. Even though they co-signed, you will be held responsible for everything. If payments are made late by them, it will show on your credit score. Don’t risk your own good credit with someone else’s problems.

There is an alarming rate of people who have found themselves in debt. The economy has forced some people to incur more debt; however, many people have gotten themselves into the debt mess before the shake in the economy happened. 

There are no quick fixes when it comes to getting out of debt, there are ways to get out of debt but the consumer needs to be proactive and work to achieve this. Gathering all of their debt information and creating a plan to get out of debt is the first step. 

Here are few tips to help you dig yourself out of debt faster: 

Cut it out! – By cut it, I mean credit cards. Credit cards are the number one way most people get into debt. Those plastic cards offer instant gratification and many people use them for purchasing everything! Gather all of your cards together, figure out the one with the lowest interest rate and then call and cancel the high interest cards. After you have cancelled them, cut them up and throw them away. Use the low interest card for emergencies only. 

Interest Matters – Call up your credit card company and ask to have your interest lowered. Most credit card companies will work with you, if not, transfer other card balances to the card with the lowest interest rate. 

Go Green! – Green as in cash. If you need to buy something, buy it with cash. If you don’t have the money to purchase the item, then don’t. 

Tap Into Your Home – If you are deep into debt, a home equity loan will help consolidate this debt. However, if you do go this route, you need to cut up all of your credit cards so you don’t continue the cycle. 

Once people have found themselves deep into debt, they will feel they are then stuck in the situation. If you take these tips and put them to use, you will be able to dig yourself out and keep yourself out in the future.