10 steps to eliminate credit card debt

It's not hard nowadays to lose your financial footing. With gas and food prices on the rise, many people are finding it more difficult to stay on track financially.

Add in the fact that interest rates on most credit cards vary between 10 and 30 percent APR and it's no wonder that Americans are drowning in debt. When it can take a decade to pay off a balance by paying the minimum amount due, paying off your debt can seem like an almost impossible feat.

But it's important to know that you do have options to pay your card balances down and eventually eliminate them altogether. With a little patience and perseverance, you can pay off the debt from your credit cards.

The steps below can start you on your way to a life with less debt.

1. The first step is to lock up your credit cards, or better yet cut them up. Keep one on hand for emergencies only. Commit to only using cash or a debit card to help get your spending under control.

2. Then, and this may be the painful part, take a good, hard look at your credit cards and balances. Make sure to include outstanding balances, interest rates and minimum payments.

3. List the cards with the highest interest rates first, going down to the lowest rate. This way, you're primarily targeting the most costly credit costs to minimize the total amount of interest you pay.

4. At this point, it's not a bad idea to call your credit card companies to see if you can get your rates lowered. Those who have made minimum payments on time and have a good credit score are the most likely to be successful, but it's worth a try for everyone. Also, try to get credit card balances transferred from high-interest cards to ones with lower interest rates. This will put more money in your pocket over the long haul. And be sure to jump on zero percent offers, if you can find them, but watch out for hidden fees by reading the fine print.

5. After examining your debt and checking in with the credit card companies to verify your options, it's time to total your minimum payments to determine your lowest monthly payment. Be aware that you want to make payments above this number whenever possible. Because minimum payments are calculated as a percentage of the outstanding balance, as your credit card balances decrease, so will your minimum payment requirements. This doesn't mean you should pay less during this process, unless you're up for a 10-year payment plan. By making higher payments and ignoring the payment minimum, you will be speeding up repayment of the debt. Don't cheat on this step!

6. Now it's time to take stock of your financial situation and develop a reasonable budget to not only pay off the credit card debt in a timely manner, but also rein in spending. Assess the money coming in and the money going out. Where can you make cuts and decrease spending? Consult with a financial planner, look for books at the library or book store and implement a computer program if necessary. Be as thorough and honest as possible to get an accurate financial picture.

7. Determine how much credit card debt you can reasonably pay each month. Stretch yourself. Drive past that coffeehouse and make a cup of coffee at work to save money. Plan dinners ahead of time instead of eating out. Clip coupons to help lower your grocery bill. Every little bit helps.

8. As credit card payment due dates arrive, pay the minimum on each card except for the one at the top of your list that has the highest interest rate. This card is costing you the most money as long as it has an outstanding balance. Make it your mission to eliminate it once and for all. Put as much money as you can toward paying it off.

9. Continue the pay-off process as each card is paid off, taking the amount you paid on the highest-interest card that was first on your list and applying this amount to the next card as each one is paid off. Pay and repeat until your credit card debt is history. Depending on your payment amounts, this will take time and effort. Stay the course!

10. As each card is paid off, reward yourself! You deserve it! Just make sure to pay cash.

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