Even before the recent economic downturn, debt levels in America were reaching record levels. With the recent drastic increases in the price of nearly everything, the problem is now compounding to the point where many people are on the verge of bankruptcy. Even if you are not close to this point, chances are you are feeling the pinch if you have any debt at all. Here are a few simple steps you can take to get out of debt and stay out of debt forever.

First, if you have more than one credit card, get rid of them. One is enough for anybody. Keep only the one that has the lowest interest rate and simply cut up the rest so that you cannot possibly use them under any circumstance. As for the credit card that’s left, resolve to use it only in case of emergency, and put it somewhere where you don’t have easy access to it. Don’t take it with you when you go shopping, so you’re not tempted to buy something you don’t need and can’t afford.

Second, pay down your debt as quickly as you can by paying more than the minimum payment. You can make these efforts pay off even more quickly if you work up the courage to call your credit card companies and ask that the interest rates be lowered on your accounts. After all, the worse that can happen is that they say no. Begin paying down your debt by concentrating on the account with the highest interest rate first. Once you’ve paid that off use the additional money to pay off the second highest rate account even faster.

Third, set up a budget and stick to it at all costs. Normally, this would not be recommended, but right now you’re in debt reduction mode and sacrifices must be made! Make a list of all of your debts, expenses, and income (yes, all of them – don’t skip anything). Now draw a line through all of the items that you don’t really have to have, and be brutal about it. Add up all of those items and you will now have an amount you can add to your debt payments. Now, the hardest part: do it. Statistics show that 60% of all families that set out to create a budget abandon it after a month or two. Don’t be a part of that statistic.

Fourth, try to get additional funding from family members to pay off your debt as quickly as possible. If this is not possible, then consider getting help from a debt consolidation service or a credit counseling service. Just be careful that you use a reputable service. For advice on how to find a good service, see the appropriate articles on this site.

Finally, consider some more extreme measures if they become necessary. Some things that could be considered are taking a second job temporarily (don’t overdo it, though), or selling off items around the house you don’t want or need any longer. The profits realized from these can greatly accelerate your debt reduction plan.

While many of these steps may seem drastic and difficult, consider the consequences of continuing a debt-laden life. There really is no substitute for the freedom you will feel when you no longer owe money to other people or companies. Without the stress of having debt, you may even find yourself to be a happier and healthier person! Wouldn’t you say that’s worth some short-term sacrifice?