Jennifer,

Stop going further in debt! Someone once said if you want to get out of a hole, the first step is to stop digging. If you’re serious about eliminating debt, pay for everything as you go and refuse to use your credit cards (unless it’s an emergency).

Be ruthless about cutting out all luxuries and nonessential expenses. Skip the pricey bistro and take a picnic to the park instead. Cancel cable. Iron your own clothes instead of using a dry-cleaner. Apply all the money saved directly to debt repayment.

If you have more than one credit card, consolidate them onto one low-interest (or better yet, zero interest) card. This reduces the possibility of losing track of due dates and incurring late fees. It also helps to provide a reality check: if you have five credit cards with a $2000 balance on each, you might fool yourself into thinking each of those is not so bad. Put them together, however, and you’ll see what you really owe.

Pay off the card with the highest interest rate first. Some couples say, “Let’s pay off the card with the small balance first.” Others say, “Let’s take on the biggest challenge first and focus on the card with the largest balance.” We advise couples to pay off the account with the highest interest rate first - after all, it’s the interest that is the real killer.

Once debt is paid off, resolve to use your credit card for emergencies only. To make sure you can't easily access the card, store in a place that’s hard to get to: freeze it in a block of ice or give to a trusted friend with strict instructions, “Give this back to us only under dire circumstances.”

Quick Cents Application Points:

1. To get a reality check, add up all your credit card debt and note the interest rate on each card.
2. Get your statements from the end of last year and last month. How much better or worse has your situation become since last year? How much have you paid and how has the amount of debt changed?
3. Create an action plan to get out of debt. Who can be the designated keeper of your cards? Work together and set some realistic goals.