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Get a Lower Interest Rate

You would think this would be a no brainer for most.  However, I am surprised to find that many people keep credit cards that have a 19-25% interest rate and pay the minimum every month.  This is insanity.  It is going to take you forever to pay off that debt at that interest rate.  Call your credit card company and ask for a hardship program or call a credit counseling agency such as CESI.  They can help you get a lower rate and keep it low. 

Pay Much More Than the Minimum

If you have ever tried to lose weight, you know that in order to lose weight you have to exercise more.  Exercising just to maintain your weight is good, but for substantial weight loss, you really need to kick it up a notch.  The same goes for your debt.  Paying the minimum or even just a little more than the minimum on your cards is not going to get you out of debt quickly.  Paying an extra $100-200 a month will.  Play around with some financial calculators at bankrate.com and see what type of payment is required to make a dent in the debt. 

Focus on One Debt Only

I have had many clients that call in and tell me they are paying extra on each credit card.  It’s $20 extra here and there on each debt.  It is admirable to pay extra, but focused effort is MORE important.  So, instead of paying extra on every card, pay extra on just one card and the minimum on everything else.  Don’t know which one to choose first?  Take your pick.  You can do the one with the lowest balance, highest interest rate, or highest payment.  Just pick one and focus intensely on putting as much money towards it as possible while maintaining everything else.

 Stop Charging

 This goes back to the losing weight metaphor.  You can exercise all you want, but if you continue to eat fast food every day, you are not going to get anywhere with weight loss. The same idea applies if you pay on the card and then charge it back up again.  Stop charging to your cards and focus on creating a manageable budget that allows you to break your dependence on credit. 

Build Rewards into Your Payoff Plan

Create a reward for each debt payoff.  It does not have to be a huge reward, but something you are really looking forward to doing or having.  It could be a meal at your favorite restaurant or a weekend trip.  Just be sure to incorporate some type of positive reinforcement for having focus in paying off your debt!