Step #2:
Be Smart With Those Credit Cards!

After you’ve calculated all you owe, the next step to living debt-free and getting your finances in tip-top shape is to pay off any outstanding balances on your plastic. (By the way, we’ve outlined 6 easy-to-follow steps to do just that here: Pay Off Your Credit Cards Now!)

Sure, credit cards are somewhat of a necessary evil — it’s hard to get by in life without them. For heaven’s sake, though, if you make purchases with them, pay them off in FULL each and every month!

Also limit the number of cards you carry in your wallet to two or three — tops. The best ones to keep are those with the lowest interest rates and the most benefits, such as airline miles and cash back. As for the rest — cut ‘em up!

Next: Step #3: Cut the Car Loans