Wow! I am seeing a lot good tips from veterans that once had debts and now debt free. Take advantages of their tips. Ask them for wisdom, for they speak from experiences with different types of debts.
I often work with clients that have bad credit history and I often help them to rehabilitate back for to purchase a home or refinance if needed.
Top budget buster I have seen since working in Mortgage industrial is car loan. Often I see people get a car loan that is 300+ and often have two car loans both 300+. This is where budget strain their financial needs and #1 budget busters. If you make wise decision of not buying car that requires over $200 monthly, then you have better chance of financial. Best to do with car is pay it off. One of my co-worker came across one individual with salary of 30,000 and wanted to buy a house. Turn out he couldn't because he had $600 monthly car loan on Jaguar along with insurance on top of that. This show poor financial management decision making. Its better to educate yourself and avoid making similar mistakes that others made in past.
There are more tips to share but I am not sure if people want to hear those tips.
Dave Ramsey is one of the book that can help you get better idea of how to get out of debts. He said car loan is first question he ask everybody. So be ready to answer that question.
http://www.daveramsey.com
A lot of you say about wanting to be a debt-free. I want it too but its not my priority. I rather to be financial free for life than be a debt-free. Ask me on this topic later. I am sure Birdie and DeafRichard know what I am talking about.
As today, I only have car loan as my liability because some jerk hit n run with no insurance on his car. So I end up toss my totaled paid off car for new car. I am paying 188 monthly for 8k loan. It will do until I become financial freedom then I can buy any car I want by then. I am only 26 years old with no student loans, no medicinal debt, or credit card debt. I pay off all my credit card on time and full amount of balance. I walked out of Gallaudet University age 23 with over 13,000 medical debts but no student loans as I paid every semester in full.
How I got rid of my collection of over $13,000 medical... I just called and agreed to settle my debts in half. I won and saved a lot of money. If you want to know how to get rid of your collection, you can PM and I will give you more personal tips in private due to confidentiality individual would want to know.
I know this is a lot to read but its a start. Road to debt-freedom then road to financial freedom.