When you have an overabundance of debt, it's natural to want to get rid of it as quickly as possible. Interest costs can really add up, and having too much debt makes it difficult or impossible to take on debt for things you need. But when we're faced with more debt than we can handle, it is important not to panic. It is in your best interest to try to get out of debt on your own if possible. Many people make the error of assuming they can pay off their debt really quick.
They go ahead and set goals that aren't realistic, and when they can't reach them they get discouraged or give up. Many end up filing bankruptcy, because they feel there is no other hope for them. You need to be realistic with your plans. Sit down and make a very thorough budget, including all of your monthly expenses. You then need to determine what you can live without, and take that money you save and put towards paying off your bills.
The following are some things you can look at cutting out of your spending: Eating out- this is a major expense for many people. Evaluate how many lunches you're buying at work, how often you eat out with friends, etc. Make your lunches at home and bring them to work. Have dinner out with friends less often, perhaps only once a month. You might even be able to suggest something with friends that is less expensive that you can do together, or have a potluck at home.
Vices- many of our bad habits also use up our precious money. If you smoke, you should quit- it is better for your health and for your wallet. Try making special coffees at home, rather than getting coffees out every day. These daily cut-backs really add up. Entertainment- be sure to look at where to spend money on entertainment and cut back. Try to rent movies in, instead of going out to movies all the time.
It is important to not completely deprive yourself and be bored, but to cut back within reason. Travel- if you can cut back on the amount you drive your car, you will notice great savings. Try carpooling or taking the bus- you'll save on gas, car repair, etc. It may take you several months or even a few years to get your debt paid off, depending on how much debt you're in and how much extra money you can put toward it each month. But as long as you're able to make your minimum payments and add a little extra to at least one of your bills each month, you will be making progress.
You'll also be keeping your credit in good shape by making the payments on time. Just be patient, and you will eventually be debt-free.
Do you budget your monthly spending? If not, that could be why you're dealing with all that credit card debt. Learn how to reduce your debt faster and with less interest paid on the Debtopedia website. Get a free copy of my report "Secrets of Credit Card Debt" at http://www.debtopedia.com