Plan

• Lay everything out, including credit card statements, car payments, mortgage payments, rent, utilities, food expenses and other monthly expenses. Determine which are necessary and list those as first priorities. Next, list the debt that has the highest interest rate and work your way down to the lowest. If you pay off the highest interest charges, you can apply more to the principal of the lowest debt.
  
  

Negotiate

• If you haven't fallen behind in your bill paying, you may be able to negotiate the interest charges on some credit. This isn't always possible, but it's worth a try. Occasionally, creditors will co-operate and lower rates on a loan.
  
  

Reduce Available Credit

• If you have a line of credit with a bank or loan company, request a reduction in what is available to you to prevent getting into this situation again. If a credit card company increases your limit, call and turn it down. Cut up credit cards and only keep one or two for emergencies and essential uses.
  
  

Pay More than the Minimum

• If you only pay the minimum on credit cards each month, you'll feel like it takes forever to pay them off. Pay more than the minimum and then cut up the card after your balance is repaid. According to financial guru Suze Orman, "Once out of debt, you'll find the pleasure of not creating debt far exceeds the momentary thrill of buying something on credit that you don't need."
  
  

Consolidate or Borrow from Yourself

• If you can obtain a home equity loan or consolidation loan that offers a lower interest rate than what you currently pay, consider taking one out and eliminating all your other credit. Another option is to borrow against your life insurance or 401k plan, but only if you can pay it back before the insurance lapses or you have to pay a penalty. These are risky options so only borrow what you know you can repay. Resist the temptation to consider what additional money you can borrow to buy more things you don't need.