Holiday Gift Giving: Avoiding the Hype -- and the Debt

Tracey Gold Bennett | 11/14/2011, 1:47 p.m.

WI: How do you get out of debt if you're buried deep in bills?

WW: There is no secret/magic to getting out of debt. You have to spend less than what you earn, no matter how difficult that is. For those of us who have accumulated a lot of debt and looking to become debt-free, you can get there, but once again it's a process. Look at your outstanding debt and you want to tackle them one at a time. Start with the smallest ones and work your way up to the larger ones. If you approach it this way, you will get out of debt.......in time. One thing, in order for this strategy to work you have to stop accumulating new debt.

WI: Bad credit. How do you shake it?

WW: Bad credit ...in my experience, the way to "fix" bad credit is time and paying your debts regularly. If you have negative information on your credit report first make sure that it's accurate and if it is,I would contact those debtors and see what can be negotiated. Stick to what you have agreed to (payment terms) and in time your credit will get better. Remember your credit didn't become bad overnight, and it's not going to become good overnight. You should check your credit report at least once a year.