Any thoughts about how to reduce my debt?

When you find yourself in a hole, the first rule is this: Stop digging.

And you can do that in four maybe-not-so-easy-but-absolutely-necessary steps.

1. TODAY, take the two credit cards that are charging the most in interest out of your wallet and cut them in half with a pair of scissors.

You’ll want to keep one card available for emergencies. This is an emergency: Your car breaks down when you are 300 miles from home and you need to pay for repairs. This is not an emergency: Those golf clubs you have been coveting suddenly go on sale.

2. Unless you do have an emergency, don’t charge anything else going forward. Period. No exceptions.  

3.  Create a definitive timetable for paying off the card that is charging the most in interest, as opposed to the one with the highest balance. Once you do, cut that timeline in half.  (So, if you said, “I think I can pay it off in 18 months, your actual goal is nine months.)  Yes, it is going to be painful.  But, odd as it sounds, if it isn’t painful, you aren’t going to do it.

4. Once card No. 1 is paid off, follow the same process for cards two and three.

Yes, it is going to take you a while to dig out from under, but you can do it.

Once you do, see rule No. 2: only use the card in an emergency. If you can’t afford to buy something with cash, you can’t afford it.

There is simply no other way to do it.