If you can consolidate your debts and secure a lower interest rate do it. Read the contract first for hidden service charges.  Set a target date to clear debt and closely follow the progress.  Never pay the minimum on credit cards, it will effect your FICO score.  Paying an additional $5 over minimum will help eliminate the negative impact of paying just the minimum. 

 You Need a Plan 

The plan is called a budget!  You can’t evaluate your spending or strategize cuts without knowing where and how you are spending today.  Fortunately there are a number of free budget planning programs available.  Go to docs.google.com for great budget and credit card management tools.  Coming up with the budget is the easy part.  Sticking to it is the hard part.  You have to visualize what how much better everyday life is going to be when you get out of debt.  Focus on that to curb the impulse to buy or use something you really don’t need.  The key obviously, is not to spend more than you make.  

Negotiate a Better Deal 

If you are overwhelmed by debt, think about getting into a debt settlement program. If you try to do it yourself, you need to be ready to talk openly with your creditors about what you want to do. Many financial institutions are open to debt settlement and you can reduce the principal by as much as 40% but you have to know what you are doing. You may want to consider hiring a debt settlement company if you are not up to it. 

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