Money management is a virtue to have from an early start in life. For some of us, the one thing we are not taught enough at school and at home is how to manage our spending. That is why it is not surprising to hear that American families are carrying billions of dollars in revolving credit card debt. We often put charges on our credit cards and just pay the minimum; remember that it is what you don't pay off and the interest you are paying each month on that balance, is what affects your credit. Charging credit cards is a habit that we all need to temper along with our budget.

These are some suggestions in getting out of debt:

It is difficult to face the truth of how much you owe and deal with the fact that you may owe more than you think. Remember to list the cards with the highest balances first. Besides knowing the balance, list the minimum payment and the interest rate you are paying. Also, you will need to prioritize your debts. Pay off the smallest ones with the highest rates first. Remember not to roll your balances from card to card. Don't be fooled! This may sound like an easy way to lower your interest rate but don't be fooled into thinking that you are making progress when you may not. Every time you apply for another (lower) interest rate card your credit is pulled. This could lower your score not to mention if you are applying for a loan on an investment property the lender may think that you are just rolling the balances from card to card.

Once you pay off a credit card, close it! You should contact the credit card company and request that it be cancelled. Try to keep to one credit card once the other ones have been paid off. If you leave them open they will still show up on your credit report and any lender will know that you could access that money at any time which they may not be comfortable with.

Get a copy of your credit report at least once a year. There are free services where you can pull them yourself. Pulling them yourself may not affect your score as having the credit card company or a car loan company, pulling them for you. You should look at a copy of your credit reports at least once a year. You would be surprised at the mistakes that are on credit reports... If you are buying houses and getting loans then you would probably know if something is on there that is not yours anyway.

Aahh, next one is no fun... set a budget. Setting a budget and sticking to it, will allow you to see your liabilities decrease and your equities increase. You could also use the suggested financial statement to see the incoming and out coming expenses. Only tap into the equity in your home if you need the money for wise investments instead of buying something that will go down in value or worse yet something like a vacation.

Invest in real estate. When you buy right, investing in real estate can help you get out of debt. Lets say, you wholesale a house (buying at a discount and selling it back to a discount hunter) or buy a property and rehab it you can then refinance it and pull out some cash and use that to pay off a bill.