THREE THINGS YOU CAN DO NOW TO GET RID OF DEBT

1 PAY OFF HIGH- INTEREST DEBT FIRST.

Typically, this means credit- card debt, since many companies charge as much as 25 percent interest on unpaid balances. “If you have a decent credit score, you can transfer your balance to a card that has a low or zero percent introductory interest rate for six months and work diligently to pay it off before your rate goes up,” says Sandra.

2

CONSIDER CONSOLIDATING. If the value of your home has increased substantially, you can consolidate all your higher- interest loans into your mortgage to get a single lower rate. One caveat: You must be very disciplined if you take this approach, says Sandra. “If you see it as an excuse to spend more, you’ll get yourself into a bigger hole.”

3

LIVE BENEATH, NOT WITHIN, YOUR MEANS. If all your income is going toward necessities, you’ll never pull yourself out of debt. You either must earn more or scale down, says Staff. Li agrees. “I faced pressure from relatives to buy a house,” she says. “But I’d rather know that, if something terrible happens, I’ll be OK financially.”