Take action today!

If you spend more than you earn or if you're already in the red, take action today and start cutting expenses. I personally took action in 2014. During the year of 2013, month after month I spent more than my earnings. It started with my trip to Europe in the summer, purchase of my first house in the fall and ended with another trip I purchased as a surprise birthday gift for V to Miami and the Bahamas in December. I ended the year with a balance $5,000 on my line of credit and NO savings due to the down payment of my house! Oh boy did I lean my lesson!

From my personal experience, to become debt free you have to have the desire to do so, as it will require a lot of sacrifice and discipline.

1) Stop accumulating more debt

Do not make any purchases that you know you cannot afford. No exceptions here, if you don't have the money for it and/or don't need it - don't buy it.

2) Track all your expenses

Write all your monthly expenses. Do the necessary adjustments to ensure you're not spending more than you're earning.

3) Renegotiate your debt

Contact your bank/ credit card company and try to reduce the interest charged on your loans.