Debt elimination starts with understanding where your money is going. An easy way to find out is to simply get a receipt every time you buy something. At the end of the week add up all of the receipts. Ask you self which of those purchases you could have done without. Why did I buy that magazine on Wednesday? Do I really have to go to Starbucks EVERY day? Could I have made it through the week without eating out for lunch every day?

Optionally, get yourself a small notepad that fits into your purse or your back pocket. At the beginning of the month, each time you spend any money write down the date, item and amount in the notebook. When you buy gas, go to the grocery store, get a cup of coffee, go to the movies or dinner simply write down the date and amount spent. At the end of the month add it all up and you will have an overall picture of where many of your expenses are. This is where you can usually identify extra income that you could be using to get out of debt. Once you have a clear picture of what is coming in and what is going out you can figure out what areas you can cut back on or ways to save in certain areas. Shop around for a better phone plan or DSL package, check with other insurance carries for a better rate on your car or homeowners policy.