8 tips to start getting out of debt

Debt: Many of us have it and we all want to get rid of it. But where do you start?

Ruth Hayden, personal finance educator and consultant, joined The Daily Circuit to offer tips to battle debt.

8 tips to start getting out of debt

1. Take responsibility for it. Look at the debt you've accumulated and figure out how it happened. Hayden says most people she helps try to play the victim card. Accepting the debt will make you more motivated to take care of it.

2. Stop thinking negative thoughts. If you don't keep a healthy focus while working on financial goals, you can become hopeless and break the plan. Example: Don't obsess over how much of your credit card payment went to paying interest. Think about paying the principle and being that much closer to paying off the balance.

3. Use your anger as motivation. Mad at the collection agencies? Channel that energy into committing to a budget plan.

4. Track your spending. Look at where your monthly income is going and find places you could cut back. Sites like Mint automate some of that tracking for you.

5. Contact a non-profit credit counseling service. These programs will help you set up a budget, negotiate your interest rates and set up a payment plan for your debt. Hayden recommends Lutheran Social Service or FamilyMeans Consumer Credit Counseling Service. Avoid for-profit debt reduction companies.

6. Is your debt hurting your life? Then it's bad debt. Hayden says traditionally, secured debt like mortgages and student loans is considered "good debt" and consumer debt like credit cards and personal loans is "bad debt." But Hayden says even if good debt has an impact on your life and relationships, it might be time to downsize or rethink more educational debt.

7. Consolidation is usually a good idea, but pay attention to interest rates. On The Daily Circuit page, David said this happened to him:

The biggest mistake I made was to consolidate my federal student loans from undergraduate and graduate school. I consolidated at 8.25% fifteen years ago and am now restricted from refinancing. My plan was to pay off my student loans through a home equity loan, but then the value of our home plummeted in the great recession. I will finally finish paying my loans off the same year that my youngest daughter graduates from college, thirty years after graduating from college.

8. Thinking about moving debt to an interest-free credit card? Be careful and have a solid plan in place. Most people who use this promotional offers don't pay off the card in the set period of time. That could mean paying a higher interest rate retroactively on the full sum of the transfer. Make sure you can handle the monthly payment and stick to it.

When you look back at your debt, was the money well spent? If you've climbed out of a significant amount of debt, how did you do it? Leave your stories in the comments below.