It is not uncommon in today’s world to have several loans, payments, and credit cards. But each month as the interest accrues and payments get steeper, more and more American’s are finding themselves in an ill-fated position, surrounded by debt. How do you begin to tackle the debt mountain? The first step is to put down the credit card.

Credit cards may be ideal for an emergency situation or for big purchases where cash in the high amount is not attainable, such as home appliances. However, credit card use for small purchases or credit cards used to pay bills is simply not a smart financial move. Many of us use our credit cards to pay for things such as cell phone bills. It may be convenient, but in the long run you are paying much more than you would originally. Once you charge your cell phone bill to your credit card account, your credit card company is going to charge you interest. You have just added to your debt.

Overcoming the debt monster takes careful planning. Cut up credit cards and consolidate any credit card payments. Do not attempt to pay off other debts by charging them to your credit card. The next step is to list any debt you may have and the interest that goes along with it. Call any institutes involved and see if there is a program available to lower interest rates. Now, each month make the biggest payments to the loan or debt that has the highest interest rate. If possible, make more than the minimum payment to each, otherwise you are often simply paying for the accumulated monthly interest and not making a dent in the debt itself. When possible, pay for purchases in cash so as not to build up anymore debt you will need to pay off at the end of the month. And remember, be frugal. Use coupons and do you really need those new shoes?