The first thing you must do is decide you want to be debt free. Once you make the decision and commit to it, the rest is actually pretty easy.

Step One: Create a budget. This is simple. Write down every single bill you owe each month. Get a spiral bound notebook with pockets. Write down the month on the page, and then as the bills come in, write them on the page, and put them in the pocket.

Step Two: Gather your credit card bills together. Budget the minimum payment for each card, with the exception of the smallest balance. For example, if you have 5 cards, and the minimum payment is $75 on all 5, be prepared to pay $75 for 4 out of the 5 cards. On the 5th card, the one with the smallest balance, pay as much as you can over the minimum balance.

Let's say your 5th card has a balance of $1500 dollars, and your monthly payment is $75. If you pay $100 per month, you'll be done with it in 15 months, right? Wrong. Each month, you're tacking on more interest, and depending on your rate, usually 18-24%, you can add as much as $75-$100 per month to your balance. You're not making any headway.

You have to find ways to pay more each month on one card, so cut out the latte's or going out to eat one a week, or, if you are stretched to the max on your budget, you can't spare one extra dollar, let alone one hundred, then you need a second source of income, or a job. (send me an e-mail at lowrychris@gmail.com for suggestions).

So you've got your budget, and now you're paying $200 per month on your smallest card. After 9 months, that card balance should be down to 0. (see why you should try to pay more!) Now take the $200 you paid on the smallest card, and apply it to the next smallest balance. Add more if you can, but you should be paying $200 plus $75 (or whatever the minimum balance is).

Work your way up the list, so that when the second card is paid off, you can now pay $75 (minimum payment) + $75 (min pay on 4th card) + $200 (payment from 5th card).

Notice how as you pay one card off, the next card is paid even quicker? By the time you get to the last card, it should only take a few months to pay down that balance. (Assuming your balance isn't THAT huge?!)

A sidenote; As you make regular payments on your cards, and pay off the balances, you will increase your line of available credit and increase your FICO scores, making you a more attractive borrower, and thus, subject to more and more offers for other cards. Do NOT open any more lines of credit. Pay off what you have. As you pay it down, your creditors will increase your credit line, which you can either use at a later date, or just have for an emergency.

Once you are out of debt, stick to a budget that includes fun, and food, and other purchases that got you in trouble in the first place. If you can save up for a month or two, and pay with cash, you will still get the item you want, and not pay two or three times the price (interest) if you put it on the card.

Be responsible with credit. I'm an advocate of keeping all sorts of lines of credit for any eventuality. I'm an even bigger advocate of keeping balances ultra low (payable in one or two months) so that it doesn't become an overwhelming problem.

Another sidenote, if you are behind in credit card payments and you can't make the minimum payments, do me one favor. Call the creditor and talk to them. Tell them you are in over your head, and you can pay X amount each month comfortably. Tell them when you are going to pay (schedule) and then follow through on your promise. Ask if they can reduce the interest rate to help you pay down the balance and get back on your feet. I promise you, all your creditors want is to hear from you, and hear you have a plan. And then they want to see you follow through on that plan.

It may take some time, (or no time, if you can get a second income,(send me an e-mail) but you can be credit card debt free in no time!