Most of us have had some experience with it, and if you haven’t…consider yourself one of the lucky few. Debt is rising to astronomical proportions in the United States and the average American household carries nearly $6,000 in credit card debt alone every month. With widespread speculation that the economy is headed for a recession, the mortgage home crisis, and the rapidly losing value of the dollar, there has never been a better time to face debt head on and begin eliminating it. Freeing yourself of debt will enable you not only free you from financial bondage, but help you financially prepare for the future of you and your family.

So, ladies and gents…let’s get started!

• Cut up your credit cards! You can’t use them if you don’t have them. Taking them out of your wallet or leaving them at home is not nearly enough and you may still be tempted to use them. Get rid of them entirely!
• Tacking your credit card debt may seem like on overwhelming and entirely impossible task, but a little organization can make the job a little easier. Gather together all the statements for all the cards you are currently carrying a balance on. Figure out which one you are paying the highest interest on and begin paying that one down first. Put as much extra money as you can afford to that card each month. Once that one is paid off, start with the next one, and the next one, and so on until they are all paid off.
• If you qualify, do a balance transfer to a card that has a lower interest rate or (if you’re lucky) one with no interest for 12 months. Budget accordingly so you can have that card paid off within those 12 months and you will not pay a dime of interest.
• Reducing debt and becoming financial savvy no doubt entails sacrificing some of your luxuries. Whether it’s going to get a coffee each morning or eating out every night, cut back! Get a manicure every other week instead of each week or limit your budget when it comes to entertainment. You will be amazed by how much you can save (and put towards your debt) each month if you cut back just a little on your favorite “luxuries.”
• President Bush recently approved an economic stimulus plan in which millions of Americans will be receiving tax refunds ($600 for singles, $1200 for married couples). Use that money to pay down your debt!!!
• Review your current mortgage and car loan (if you have one); are you living within your means? Consider trading in your fancy car for a more practical one and you may be able to cut your monthly car payment in half. Consider downsizing if you have more space and a larger mortgage than you know what to do with. As far as mortgages, try researching different early mortgage payoff plans to find out how you can pay off your mortgage sooner than expected.
• While it is important to pay off your debts first, once that is accomplished, you should begin building a sizable savings account. Finance guru Suze Orman recommends having at least eight months salary saved up. This way you and your family will be financially taken care of should anything happen such as losing your job or an injury that prevents you from working.