Are you struggling with your current financial state. I bet you could use a fresh financial foundation, right? There are two ways to do this, the simple way which is to file bankruptcy and the hard way where you pay off all your debts and start fresh . I choose the hard way and this is how you can do this.

The first thing you must do to rebuild your financial foundation is to stop using credit cards. Take everyone of your credit cards and shred them up. I know you still want to build your credit so that is why I suggest you apply for a prepaid credit card. You will not get sucked into the debt trap and at the same time you can slowly establish your credit.

The second thing you should do is to pay off all your bills . The easiest way to do this is to call all your creditors and ask for a debt settlement. Most creditors will agree to some kind of settlement if they see you are a decent customer with them and you show all the signs of someone in need.  And the next way to pay off your bills is to utilize a debt consolidation program. They are decent because they do all of the work for you while you just lounge back and fill out the checks. Usually they have you write them a check every month for the amount and they forward it to the creditors. That way they can make sure the companies are getting paid and they can track your payments. It is truly a great way to pay off your debt. Getting out of debt and becoming debt free is one of the most important things you can do for your finances. By following these tips, you’ll be on your way to becoming debt free.