A step by step plan for paying off what you owe, quickly.

Getting out of debt is one of the key elements to becoming financially fit. In a society driven by financial excess, reaching this goal is increasingly difficult but can be done with some determination and the right tools to help you get there.

According to a survey conducted by Impulse Research Corporation, 59% of Americans stated that they regularly maintain a household budget. This number is shocking considering the average household debt in America has grown to $18,700, with credit cards and auto loans combined. This ever-increasing debt load suggests that American families continue to spend more than they make.  Obviously, many of the methods being used to manage household finances are not effective.

Despite these astounding debt levels, 41% of people still do not maintain household budgets. The main reasons cited are:

• 57% say, "I have a good idea what I can afford, I don't need to budget".  Statistics, however, show that many American families spend as much as 10% more each month than they earn. This can often be traced back to not knowing how much has been spent, and how much money is left on a daily basis.

• 45% say that budgeting is "too difficult," "too time consuming," or "too confusing." Budgeting can be all of the above if you don't have the right tools or information. But with the right tools, budgeting - which is really spending management - can be easy and far less time-consuming. The key is using today's technology to simplify the process, not complicate it.

• 23% say, "I start budgeting, but loose momentum as the year goes on." One of the keys to successful spending management is consistency. By using the right  tools and putting a plan in place, you can consistently spend less than you earn and quickly eliminate your debt.

• 21% say, "It is too hard to stick to a set budget with more than one person making purchases and using the accounts." Budgeting, or spending management, can be difficult with multiple people spending from multiple accounts, however, by using an envelope budgeting system,everyone can be involved in the creation of a spending plan, and everyone can see what money is available to spend, how much is left,and how long it has to last. Using an online application like MvelopesPersonal makes it even easier. Your household's spending plan can be accessed through a secure online connection from any PC with Internet access. You and your spouse can both see how much is left to spend in each spending category and how long it has to last. No guess work involved.

To do this, you need a spending plan or a budget. Maintaining a budget can be a daunting task- tracking purchases, manually recording transactions, balancing several different accounts, etc. The list goes on and on.

In our near cashless society, it's harder than ever to keep track of every purchase. It doesn't have to be difficult though, by using advanced computer technology, it's easier than ever to create and maintain a spending plan that will help you quickly eliminate your existing debt, and avoid incurring any new debt.

The best way to eliminate debt is using the Debt Roll-Down Method partnered with your Envelope Budgeting System.

The debt roll-down principle works by determining the total monthly payment you can make toward debt repayment. Each time you pay off a debt, you add the payment for that debt to the monthly payment for thenext priority debt. This will accelerate the rate at which this debt ispaid. When the second debt is paid, you add the payment you have been making on this debt to the monthly payment for the third priority debt.

This process is continued until all debt has been eliminated. The key is to continue making the same aggregate debt payment each month.  Following this debt elimination principle can often assist you in eliminating all of your debt, including your mortgage, in as few as seven to eight years.

There are two ways to prioritize debt repayment: smallest outstanding balance to largest outstanding balance or highest interest rate to lowest interest rate. Because, in most cases, you will eliminate your debt faster if you begin with the debt carrying the highest interest rate, most financial advisors agree you should prioritize your repayment based on the interest rate--highest to lowest.

Traditionally, many people managed their money by dividing their cash into several paper envelopes. An envelope for food, entertainment, utilities etc. They then spend their money from these envelopes. They always knew how much money they had left, and how long it had to last. Today the best way to create and manage your Envelope Budgeting System is with the online budgeting system Mvelopes Personal. Mvelopes Personal is a breakthrough in budgeting and spending management that modernizes this same envelope budgeting concept using advanced Internet technology.

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