Get Out of Debt: Start Here

Since you're here, you probably have considerable debt and already know you need to get it under control in order to secure a financially stable future.  Regardless of your total amount of debt, the worst debt you probably have is credit card debt.  That's not to say that all credit cards are bad, but if you're carrying large balances month to month on credit cards, then it's costing you a fortune in interest that prevents you from being able to get ahead financially.  (Probably the only debt that could be classified as "worse" than excessive, high interest credit card debt is the awful "pay day loans" which really cause major problems for people who get them and aren't able to pay them back by their next payday.)

So your path to becoming debt free, or at least living with a manageable monthly payment, should start here:

PAY OFF CREDIT CARDS

Of course, this is easier said than done- but I promise you that it is possible if you are determined.  There are a few ways you can go about paying off credit cards.

Small Account Balances

If you have credit card debt with reasonable balances, you might choose to just focus your efforts and pay them off by sending as much as possible to your credit cards each month.  I would personally make a list of each of my credit card accounts and then use the "snowball" method of repayment.  You pay as much as you can on your credit card w ith the SMALLEST balance, while paying the minimum payments on everything else you owe.  Once your first credit card is paid off completely, you apply the amount you've been paying on that bill to the next account in line, so you are sending the minimum payment PLUS the amount you had been sending to the first account.  Your payment "snowballed" bigger.

Another method to pay off debt is the Dave Ramsey method.  He suggests making your list of credit cards in order of the highest interest rate first; and then paying as much as you can on the account charging the most interest so that you end up paying the least amount of interest possible over time.  It will take longer to pay off that first account if it has a large balance; but you know you are saving over the long term.

For me personally, I like the snowball method because I get motivated each time a credit card is paid off and that encourages me to keep going until they're all paid off.

Monster Account Balances

If you're like many people though, your credit card debt is way too big and you think it would take you 20 years to pay it all off, even if you focused all your efforts and money to the bills each month.  People who fall into this situation may be better off looking into a debt consolidation loan.  These loans are designed to let you pay off each of your credit card accounts, and then you only have to make one payment each month on the consolidation loan rather than each individual credit card.

A word of caution though: some people get a debt consolidation loan, pay off their credit cards, and then turn around and spend on their credit cards again.  You do not want to do this as it will put you even FURTHER in debt than you were previously and it will become even more difficult to dig yourself out.  If you use a debt consolidation loan, get rid of your credit cards and just keep one available for things you really need a card for- airplane reservations, hotels, etc.  And be sure you pay it off in full whenever you use it.  Your goal is to be able to pay for things with cash and not have to rely on credit cards.