Most of us would like to do away with our debt. However, it sometimes looks like that debt will never go away. The truth of this matter is that there is a method that will allow us to send that debt monster back into its cave, that method is, having a debt plan that has the potential of erasing debt altogether.

A debt plan will allow you to take small bites at a time out of the bills you owe. If you follow the plan below, you will eventually be able to increase the size of those bites until your debt quietly gives up the ghost. Please understand, the debt may go quietly, but you will most likely have a party when you are able to bury your debt and break the chains of bondage which have held you in slavery for so long.

This debt plan consists of the following:

1. Change your way of thinking about money
2. Contact your creditors and let them know about your debt plan
3. Pair down the things you can live without
4. Start small
5. Have a party

Step 1 has to be the hardest one to achieve. Since many of us are emotional spenders, getting the emotion out of your debt plan will be one of the most important keys to being successful in eliminating that monkey on your back. The truth is that we often make those impulse purchases which steal our money.

Step 2 of the debt plan is to contact your creditors and explain to them what you are trying to achieve. Most would rather work with you to recover the funds tied up in your debt. Ask for a waiver of some of the fees added to your account. At the same time ask for a discounted payoff amount.

Step 3 is where you review the items you owe money on and sell what you can do without. Consider selling that big SUV in favor of a more economical used car. This will not only save on the car payment but on what you pay for fuel as well.

Step 4 starts with the smallest bill and work to get it paid off first by adding extra to the monthly payment. When this is done apply the extra money to do the same thing with the next smaller bill and so on until you are free from debt.

Step 5 is the best part. Have a party you just earned it.