The best way to eliminate personal debt or settle tax debt is to live within your means. Balancing your present needs with your future outlook is the key to success in nearly every aspect of finance, and the same holds true for debt elimination. There are a few rules that you can use to make sure you stay ahead of the game.

Rule One: Limit Unnecessary Spending

Probably the easiest factor to control is your variable spending on comfort, convenience and luxury items. It might sound like advice from your grandmother, but tighten your belt for a little bit and cut out that unnecessary spending on designer coffee, smokes and other wasteful vices. Chances are you will even feel proud of your new found discipline.

Rule Two: Choose an Affordable Home

This one can be tricky, particularly to those just starting in adult life, but try to stick to the guideline of spending no more than thirty percent of your household income on your housing. If you must push it beyond that, try to think of some ways to improve your income, because you will find yourself stretched thin if you pay too much on rent or mortgage payments. One step you can take to make your housing more affordable is to take on a room-mate or boarder. Just be sure to do a thorough background check with police and the local DMV, as well as personal references.

Rule Three: No More Carried Balances

This rule is by far the toughest debt relief of the three, and will for most people take a while to achieve, but once you get there you will be in the best financial health of your life. To keep a good credit score, feel free to keep using your credit cards, just pay them off right away before the card company has time to charge interest. It can be helpful to negotiate a card with lower transaction rates as well. Avoid cash withdrawals from a credit card as much as possible too, because the interest is often far higher than the general rate of your card.

Remember, by returning to the save-up-and-then-buy economics of the past, it’s possible to keep your ship sailing strong even on stormy financial seas.

One last tip – If you are in the armed forces, there are a range of services out there to help you get your finances back in shape. Military debt consolidation programs offer substantially reduced rates, and a range of home loans also exist for veterans that can save you money and hassles.

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1. How to Get Deeper Into Debt
2. Debt Relief Programs
3. Tips for Being Debt Free
4. Solutions for Credit Card Debt Relief
5. Ways to Eliminate Credit Card Debt Legally