Follow these 7 simple rules and get back in the black

1. Find more money to pay off your debt. Work harder. Work smarter. Get a second job, a third job, a better job.


2. Decide which debts to pay off first. Some people go with the most expensive debt (my first choice.) Others like to get the smaller amounts out of the way and then reallocate the money to the bigger debts. Whatever floats your boat. Just do it.


3. Reduce your interest costs. Consolidate using a line of credit or installment loan or get a low-cost credit card and do a balance transfer.


4. Make at least the minimum payment on all debt. If you ignore any of your debts, you’ll pay big-time with a crappy credit history.


5. When you pay off one debt, use the money you were spending to pay it off to pay down your next debt. Do not simply take the money back into cash flow. And don’t think that because your credit card has been paid off you now have room to spend. That’s how you got into this mess!


6. As you pay off debt, close the expensive accounts. You should have a MAXIMUM of 2 credit cards.


7. Change credit cards to convenience cards by tracking spending and paying off your balance in full every month. Leaving so much as $1 on your card turns the interest clock on.