When it’s a new year, what usually comes to mind? Right, new year resolutions. What about you, have you made yours for 2010? What are your priorities for this year?

Hopefully, those who have outstanding debt should try their very best to settle it and take steps towards cutting down on debt. The Christmas holidays are over and much spending is over and done with as well so it’s time to start a brand new year. And what could be a more worthy move than to resolve to pay your dues and gradually eliminate debt in your life.

Who wouldn’t want to lead a life free from debt and worry? Most of us desire a peaceful life without the money troubles, it’s just that not all of us have sufficient financial resources to help us pay our obligations. Some may have jobs but their salaries are not enough to meet their family’s needs. The others may be earning much but they are big spenders which only lead them to have lesser savings. Still others are fond of using their favorite credit cards even for minor purchases not fully aware of the high cost it entails.

Here’s what you should know. Based on figures from the Reserve Bank at yearend 2009, Australia reached a record level of debt at a whopping $1.2 trillion. This figure, would you believe, surpassed that of America for the very first time. For households alone, the average debt of each adult was at $74,000.

Financial counselors in the country admitted that indeed thousands of people are suffering from financial trouble. There are those on the verge of bankruptcy, those losing their homes and those whose personal belongings are being repossessed due to their debt. Experts add that several records have been set such as those on bankruptcies, mortgages and waiting lists for people in need of financial counseling.

So ask yourself, would you like to contribute to this problem? If you’re a responsible individual and borrower, your answer should be a big NO.

What then is the solution to slowly eliminating debt in your life? Start within yourself. It’s just a matter of attitude. If you start making a positive change in your life and be consistent with it, everything will follow.

To start with, why not make a budget plan. Keeping track of your budget and your expenses is very ideal. It will guide you in managing your family’s finances and help you set aside savings for your future. Budgeting means knowing how much money is available each week or month and how much goes out to your bills, food and other needs.

Next step is to refrain from using your credit card for your regular purchases. It’s a fact that numerous people own one or more credit cards these days but just to remind you, this is a costly habit. A lot of charges are involved every time you use the card and additional fees are charged if you make late payments.

Finally, opt for short term loans such as the cash advance and payday types. They’re more affordable and easy to avail of. As most lenders operate online today, you can conveniently apply on the internet and get your cash in a very short time. By availing of these loans, you can then just focus on repaying the amount at your most preferred schedule.