I’m 22 and make about $12-$14/hr and need to get out of $8,000 in debt fast any suggestions?

I know what you are dealing with.. I’m going through the same thing right now. Each month I have around $ 80 to get my by. Anyhow heres what you need to do:

Start carrying a piece of paper with you and tracking all your expenses the next few weeks. Everytime you buy something write it down. Don’t cheat even if it’s just a .50 or $ 1 item write it down.

Next, a few weeks later sit down with all your bills, paycheck and that list. Go through figuring paying the minium on all your bills and see how much money you have left. Don’t forget to include gas, rent, electric, food, etc.. Now whatever that amount you have left you should figure out what your highest accuring debt is and pay it to that first. Keep paying the miniums on everything else and all extra to the one highest accuring debt. Once it’s paid off take the amount you where paying to it and add it to your next highest accuring debt and keep doing that.

When figuring what to pay you should save 10% for you as a emergancy fund. This is only if you have major problems you have it to fall back on. It’s not shopping money or going out money it’s for emergancy as they will happen. They say you should have 3-6 month living expenses saved.

Now you will want to see what expenses you can get rid of or cut down on. You will probably see with that list that you buy alot of stuff you don’t need or could save on. Examples are make your own coffee in the morning instead of buying it, take lunch to work with you, take drinks to work, cut your cell phone or home phone down, drop your cable and internet, eat alot of soups, pastas and vegatables etc.. If you have a car payment sell the car and get something for a few thousand dollars. You see there are tons of ways to cut your bills down..

You must make this a real focus and get used to living frugal if you want to make it through this without it getting worse. Also, you should get a second job and try to pick up more hours where you are working. Take all this extra money and pay it towards debt. If you have a extra room get a roommate.

Once you get debt free keep taking the amount you where paying to debt and start saving it. I’m guessing it would take 1-2 years to get your debt free but I don’t know because I don’t know what your bills etc.. are. Anyhow by then you will be used to living on a certain amount of money so it won’t be a change. Take that money and start saving it. Just remember once you get debt free to keep living frugal or you will be back in that same trap. After all isn’t the american dream to be debt free and retire at a early age? Keep that in mind or whatever your dream is and it will help you make it through it. Best of luck and you should get Dave Ramsey The complete money makeover book it will help.