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In the past, credit has been too easy to get. Credit card companies and short term lenders, and/or the financial entities, banks, etc. hidden behind them, make TONS of money. When you take a look at their interest rates and fees, it's easy to see why! So they push credit cards on the public, on anyone with even half- way decent credit.

The temptation is very high. Want something? Lacking the cash right now? No problema! Just put it on the plastic. Run out of money prior to finish of the month? Just get a payday loan, right?

Mounting debt, to the stage it becomes overwhelming, is one of those things in life which may be simple to get into, but a lot more difficult to get free from. Nonetheless, those high aprs and fees can cost you a lot of money, siphon off your cash and keep you on the short- term debt treadmill for the rest of your life, if you don't DO something about it.

Sheesh! How did I get into this position? Someone please help me get out of debt!

You ask, "Please help me climb out of debt! " O. K. But YOU got yourself into debt, now it's up to YOU to get yourself out. Here's how.

1. Let's get clear with the terms. There is "bad" debt and "not-so-bad", even "good" debt. Bad debt is anything with high aprs, say, over 9% per year. Good debt is low- interest debt that you were accepted into to acquire something of increasing value, like your house or university schooling.

What you want to do first in paying off debt is to get rid of the bad toxic credit card debts. For most people, that means you want to get out of credit card debt.

2. In getting rid of bad debts, the first step is to take an inventory. Make a list of all of your short-term consumer debt accounts. Write down the name of the bank or credit card, loan or department store, the total balance owed to them, the minimum monthly payment, and the effective annual interest rate.

How do you get the annual interest rate? You add up all the interest and fees charged to you in that account. Then divide this by the total balance owed. That will get you the real interest rate per month. Multiply that monthly number by 12. That gives you the annual interest rate.

Now, take the half of your credit cards with the highest interest rate, out of your wallet or purse and hide them somewhere so you won't use them again.

3. Create a chart. Add up the total loan balances in your list, above, and start a graph, with short- term debt amount on the vertical axis and calendar months along the horizontal axis. Make a dot on your chart to indicate just where your debt balance is NOW.

As you go along in the foreseeable future, you are going to need to add up your total monthly balance and mark it on the chart, drawing a line from new dot to the last one, to create a graph to show you just how you are doing.

4. Now budget your income minus living expenses for you to meet your minimal payments, PLUS make as large a payment as you possibly can towards the charge card or other account with the highest interest rate. If the highest cost credit card is costing you 28% a year, consider of it as an investment you can make that has a guaranteed 28% annual return! That's a good investment return that you will collect, right?

Now just keep on with that formula. Budget your expenses, chart your total balance owed. Make your minimum payments and pay as much as you can on your highest interest rate credit card or other account. Keep on until they all go to zero! Then you will be completely out of the kind of debt you need to be out of…

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