Drowning in debt? Yeah, I was, too. Between my overzealous spending habits from my early and mid 20s to the high cost of my college degree (that I’m not currently using) to business start-up costs, let’s just say I would not have minded if a collection basket was passed around a couplefew times in my honor. Thankfully I have been sooo diligent over the last four years with my spending (compared to how I used to be) that about this time next year I’ll be credit card debt free! And it was a long time coming. I had about $25K in credit card debt four years ago and was being charged all kinds of interest. I was never late on anything, but the burden of owing so much money took it’s toll on me and my freedom.

So I’ve put together some tips that should help you break the shackles debt has around your ankles…

1. Know when enough is enough. Everyone has their own “breaking point” when they realize they must make a change. Doesn’t even matter what the change is—eating better, shopping less, moving on from a bad situation—-you just can’t force it until you’re mentally ready. If you do force it, get ready for some serious backtracking. There will come a time where you’re just tired of the amount of debt you’ve accumulated and looking at clothes with tags still on them.

2. Add it all up and use a debt consolidation calculator. Some people in debt don’t even know how much they owe. It’s just too scary to open up all those Visa bills and tally it all up. But do it because it’s time to face facts and make a plan of action. Get a debt consolidation calculator. I bought the one from Microsoft Money. It’s so cool because you plug in your balance, interest rate, and the amount you can afford to pay each month and it will calculate which debts you should pay off first to get you out of debt sooner. If you’re a Microsoft Excel whiz, you can create a spreadsheet or find quick ones on bankrate.com

3. Budget, budget, budget. Yeah, $6 lattes 3 times a day while you’re in debt? Not a good idea. Besides that’s $6570 a year in lattes (or lunch if you buy lunch). It’s time to find extra money you can put towards debt payments. Brown bag it, trim the cable bill, axe the extra cell phone bill minutes, limit the salon tips, etc. It’s crunch time, folks. Time to live like a pauper.

3. Don’t fall for the okey doke. There is no quick fix to getting rid of your debt aside from a large windfall coming your way. Read all the fine print like you’re studying for the Bar. There are companies out there preying on people overcome with debt who will put you in a much worse situation.

4. Negotiate with the bank for a lower rate. One of the main reasons why people stay in debt is because of the high interest rates they’re being charged. Pick up the phone and calmly call your bank. Explain carefully (yet in a friendly manner) that you’ve been a customer for so long and that you’ve received an offer from a competitor bank for a lower rate. Get the person on the other end of the line to be on your side and then ask for a reduction in your interest rate. No dice? Ask for the supervisor–remember to be polite. You’d be surprised at how far kindness will get you. Still no game? Try writing to the bank’s corporate office. They usually have more authority to make changes that you were told couldn’t be done.

5. Call in the professionals for help. If you’ve gotten no where with trying to sort things out on your own, enlist the help of a reputable debt management company. Do your research first before handing over your information. Check the Better Business Bureau, ask friends and family, or google the company to see what comes up. Many reputable debt management companies are non-profit organizations that charge a small administrative fee each month. They basically negotiate with your creditors on your behalf to lower your interest rates and monthly payments to an amount that’s more affordable than what you were paying before. Be sure to read all the fine print and understand their role in helping you before you commit to anything.

6. Don’t give up shopping altogether. Giving up shopping altogether isn’t realistic—plus the second you deprive yourself of anything you enjoy, you’ll wind up overdoing it. Instead shop smarter. Before you consider a new clothing purchase, first shop your closet. Then if you must, only buy clothes you can interchange with your existing wardrobe and that can be worn hundreds of times in different ways. Plan ahead—start saving now for next spring’s wardrobe. Any new purchases should always be paid for in any excess cash left from your budget.

7. Be positive and learn from your mistakes. Know that being in debt is a temporary situation. No need to beat yourself up about it—it happens to the best of us. Just learn from your mistakes. If you know you’re not to be trusted around credit cards, don’t carry them. And for things you must use a credit card for (like car rentals or hotels) have a check handy to pay the balance in full before the bill comes.

The Style and Beauty Doctor reader Mortina recently asked in our Talk Amongst Yourselves or Ask Me a Question post, “Danielle, I absolutely adore your Fashionista Finance posts!!! I’m going back to college this Fall & I’ll need as much of your advice as possible as I cut back (I don’t know about completely giving it up LOL) on shopping to pay for school. I am an adult student that works full time in a business casual office and I’ll be leaving work & heading straight to class.”

Since I racked up so much debt on buying clothes when I was in college (apparently since I was in uniforms from kindergarten up until my senior year in high school, I went buckwild when I could wear my own clothes to class), I like to think I’m an expert on what NOT to do…lol.

There’s a lot of excitement when September comes around. Your back aches from carrying those telephone book-like fashion September issues filled with hundreds of thousands of drowl-worthy duds, you want to start the school year off in style, and it’s like your closet gets a fresh start. But getting too carried away can be detrimental to your financial health. So follow these steps:

1. Clean out your closet. I find that the less stuff I have, the less I buy. Back in the day I had a closet overflowing with clothes. When I finally decided to edit it down, there were things in there I totally forgot I had (when you don’t know what you have, you don’t know what you need and tend to buy more) and even had things in there with tags on it. Now I have a much smaller closet and only have items that I can wear a million different times and a million different ways.

2. Know the season’s trends. You can find all fall 2010 fashion trend info here. Thankfully many of the trends this season (leather, fur, etc) are items that are already in your closet or can be inexpensive finds at your local thrift store. Plus they’re also items that are classic and can be worn year after year.

3. Make sure you have some wardrobe basics in your closet. No matter what your style is, wardrobe basics are needed in your closet. You can add accessories to make your outfit pop. Basics for a work to school wardrobe include a cardigan (go beyond black or grey), boot-cut dark denim jeans (universally flattering on all body types), a flat boot (black for cool tones, brown for warm), a statement book bag, a statement coat, flattering black pants, and a white blouse

4. Buy nothing on a credit card. If you have to whip out Amex, Visa, or Mastercard, it’s not worth being in your closet unless you can pay the bill in full at the end of the month. And even then second guess a credit card purchase—even if you do pay it in full, that’s still extra cash being spent.

5. Make sure you fully understand your bank’s debit card policy. By now many banks have changed their rules on how you use your debit card. Be sure you get their policy in writing and study it like it were a mid-term. Not knowing the rules can cost you $35 or more in overdraft fees.

6. Shop online to find great deals. Sometimes you have to be in the club to learn about your favorite retailer’s sales. But set your settings to sales only to avoid being tempted by daily emails filled with new merchandise. Also get in the habit of googling for coupon codes. You can usually find some discounts that aren’t published.

For me it depends on how I feel about how my body…lol. Back when I was about 30 pounds heavier, it was all about the makeup. Gain a pound? Add some lipgloss…lol. When I lost the weight it was all about the clothes. Now that I’ve gained about 10 pounds back, I’d say I’m evenly spending on clothes and makeup.

What about you? Talk Amongst Yourselves: Do You Spend More Money on Makeup or Clothes?

P.S. My new comment system is being very wonky and is putting random comments into the moderation queue. Not sure how to fix it yet, but I’m working on it. But either way, the moderated comments come to my email and I approve them all (good or bad—as long as it isn’t excessively “spammy”…lol) the second I see them. So if your comment goes into moderation, just check back in a few for your comment. Still have issues or have suggestions—contact me.

The way you use your debit card could change August 5th. Many banks are alerting their customers about the option to either opt-in or opt-out to letting the bank decide to approve some of your debit card transactions if you don’t have sufficient funds in your account. For approving transactions that go over your available balance, your bank will charge you an overdraft fee normally in the range of $35 per item. You can opt-out and any transaction that would exceed your balance would be declined at the point of sale.

Me—I have accounts with two banks and a credit union. Why? One is because it gives me a discount on my car loan rate, the other is because my family all have accounts at that bank and it makes it easy for me to transfer money to them—OK—let me stop lying—for them to transfer money to ME in an instant…lol. And the credit union account is because credit unions generally rock…lol. My credit union already won’t approve any debit card transaction that goes over your available balance even if you have overdraft protection.

As for the other banks, I have opted-out of the service. I don’t need a $1.95 swipe for McDonald’s coffee costing me an extra $35 because silly me didn’t balance my account. I’m pretty good at knowing my balance at all times but things happen sometimes. Plus I keep my checking balance very low and have my savings locked away in an account that I can’t touch.

Make sure you read the fine print on any and every thing your bank sends you so you’re aware of any change in fees or services. Also call your bank to have their debit card or overdraft protection policies sent to you in writing.

Have you decided whether or not you’ll opt-in? Tell me in the comments.

Check out this post from The Style and Beauty Doctor vault. Fall is right around the corner—don’t fall into the credit card trap to finance your wardrobe additions.

So we’ve seen the return of luxury dressing at many of the New York Fashion Week shows–leather and fur will have their rightful spots in wardrobes across the world. But how do you pay for this stuff if you don’t exactly excrete currency? Well, with some smart budgeting and wise savings, you can have a fab wardrobe for next fall. Here’s how:

1. Bring Your Own Brown Bag. The days of spending $10 and up for just lunch everyday are OVER. If you aren’t culinary-inclined, google some quick lunch recipes and brown bag it. A trip to the grocery store can afford you enough food for breakfast, lunch, dinner, and snack for a whole week with what you might have paid for just lunch only. What you save needs to be tucked away into a savings account.

2. Open a Special Wardrobe Savings Account. No, I don’t think banks are actually offering “wardrobe” accounts, but you need to have a savings separate from all your other money so you don’t commingle your funds. Many banks offer something called a holiday club where you can put away small amounts of money every week or so and you can’t touch the money until October when they transfer it into your checking account or send you a check. If you store $100/mo from now until October, you’ll have $1,000 to spend on upgrading your wardrobe whether you choose a few big-ticket staples or a bunch of smaller-ticket ones. That’s only $25/week. You can do it!

Also check out online savings accounts (check the bank’s FDIC credibility before you hand over your green) that tend to offer higher yields and make it less likely for you to wipe your account clean at an ATM.

3. Sell Your Back Stock. If you have a closet filled with clothes you never ever wear, jazz them up, grab a camera, and pawn them off on ebay. One girl’s trash is another girl’s new Louis Vuitton bag.

4. Get Your Girls’ Support. You lean on them for everything else, right? Let them support you in your financial goal (and even help keep you in check when you slide).

You can also do a savings club with your girls through a susu. In a susu all parties are required to pay in a certain amount of money over a period of time usually on a weekly basis. Each week one person collects all the money everyone hands in which can amount to a really good sum. Let’s say for instance you and 10 trusted girlfriends decide to do a susu and each of you puts in $200. When it’s your turn to collect, you’ll get $2,000. Yes, you have to basically put in $2,000 to get your $2,000 but if you’re not a savvy saver, this is a great way to start.

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How do you save? Tell me in the comments!