From the time we graduate high school up until the day we die, we are faced with the hassles of credit from every direction. Many of us have gotten ourselves into debt where they cannot pay on all the debts they have or they're barely surviving by paying the minimum payment on their debts. However, the biggest spenders are African Americans. According to a report from the Consumer Federation of America, the typical Black household holds less than one-quarter the net wealth of the typical American Household - $15,500 vs. $71,700. This wealth gap is much greater than the median income gap between Black American households and all American households -- $27,900 vs. $40,800 in 1999. And these are the ones who have the most debt and the most troubles paying off their debts by living beyond their financial means. I have devised a plan which can eliminate your debt for good and help you earn wealth in only a two year time period. I have worked in the business of debt collections for the past five years and have seen some of the worst cases of debt across this country. With the knowledge I've gained from the debtors, attorneys, collection agencies, bankruptcy attorneys, credit bureaus, credit counseling services and settlement companies. I have devised my own fool proof get out of debt strategy which has been proven to work by eliminating debt and gaining wealth. I know that it works because it has worked for me and it will work for you to if you follow my 10 step program. Step 1 - Make a Promise to Yourself You have to make the commitment to get your finances in order for yourself and no one else. If you're not ready to make a financial commitment to yourself, or if you're only doing this because someone is forcing you to do so, you will not be successful. When you are ready to seriously make that commitment to get out of debt, start with step two of my proven program. Step 2 - Do the Math First tally up everything you owe. There is a difference between debts you have like credit card debt and on-going expenses that are not debt like, utilities, rent/mortgage, car note, insurance, etc. You must know where you are at financially. You can't fix something you have not yet examined. Step 3 - Get Your Credit Score Get your credit scores from all three major credit bureaus, Experian, Trans Union and Equifax. Look over all of them thoroughly to make sure there are no mistakes. If you find any contact that credit bureau and correct those mistakes. Also get rid of any old accounts with $0 balances. Step 4 - Write Down Your Goals Your first goal you should jot down is to be debt free in two years. Second is to start a savings account, emergency fund and a college fund. Third should be to live exclusively on a cash basis in 4 years. Step 5 - Start Living off 15% of Your Take Home Pay This means you must live on 15% of your take home pay 20% would be better but 15% will do. For example if after paying bills you have $350 a month that usually goes towards gas, groceries, clothing, pocket money and savings. Take $50 of that money and put towards savings and emergency fund. In order to get rid of your credit card debts you must commit to the savings. After a few months of putting at least $50 towards savings and emergency fund a month, you can start to use this money instead of your credit cards for small purchases when you run out of money. But if you take any money out of that emergency fund you must pay it back with interest when you get your next pay just like you are your own personal bank. Try using 15% interest on whatever amount you take out of the savings. Also call your creditors to make payment arrangements with them. Check to see f there are any programs which you can enroll yourself into to help your situation. But most important you must bring your accounts up to date first. Some creditor will tell you they will put you on a payment program for a certain amount per month, but your days delinquent still continue to climb which shows up on your credit bureau. You must make sure you bring your accounts up to date first with your total amount due, then enroll yourself on a payment plan or a hardship program and check your statements every month. Your accounts must remain under 30 days delinquent for it not to affect your credit bureau reporting. Step 6 - Find Avenues for Extra Income Find avenues to cut costs. For example start packing your lunches or parking in free spaces or park and rides and walk to work. Have a garage sale to get rid of things you don't use and don't need which can earn you extra money and get rid of clutter. Also try an at home business where you can make extra money in your free time at home. But be cautious about the at home business because some are scams. Or pick up a part time or weekend job to earn extra income. However the most effective is starting your own small business, this is how you control your own income. Step 7 - Devise a Savings Plan Once you're bills are down to a reasonable level and you can pay them on time. And your living off 20% of what you bring in, and making a little bit of money on the side. Review your plan, 30% in living costs, 30% in emergency fund, savings and college fund, 40% debt and expenses. This is actually better with a two person income because one persons check could go towards these expenses and the other individuals check could be the non bill paying "freedom" check. Step 8 - Investing Now its time to invest your money. Income does not get rid of debt wealth does. Wealth is assets or things or worth, things that overtime gains worth. Assets get more valuable overtime until they are more valuable than your debt. At that time is when you are totally out of debt. A few good places to invest are stocks in your own business, retirement and your mortgage. Step 9 - Finally Getting Rid of Your Debt Now you can start putting more money towards your debt. Start to pay off the smallest debt first. Then use that payment once that account is paid in full to start paying off the next highest bill. This way you won't be paying anymore and your payments will consistently stay the same but your debt will disappear. Step 10 - Using Your Credit If at all possible, use cash whenever you can. But if not and you need to use credit for an emergency or even for convinces then you may do so but pay it off in full the following month. This way you will avoid the high finance charges that the banks charge. If you follow this 10 step program I can guarantee you will be debt free within the next two years.   Here are also a few sites to assist you with your debt management Debit Tips The Investment FAQ