Fast-track Method to Get Out of Debt

According to Bankrate.com, the average household debt in the United States is $14,500, as of 2011. If you are simply making the minimum payment on your credit cards, it can take years to pay off those debts. Spending $1,000 on a credit card takes an average of 22 years to pay off. If you have an excessive amount of credit card debt, you can reduce this debt faster using the fast-track method.

Review

Before solving your debt problem, get the facts down on paper. Many people don't realize the extent of their debt until they list all of it. Make a list of all the credit cards you hold with the name of the credit card company and its telephone number and address. List the amount you owe for each card, the interest rate, balance outstanding and minimum required payment amount.

Pay by Cash

A typical credit card purchase, says Bankrate.com, costs 12 percent more than a purchase made in cash. Stop using your card and piling up additional debt. Make purchases with cash or by debit card. This will increase your awareness of the money you are spending and make you more careful about your purchases.

Ask for a Lower Rate

Call all of your credit card companies and tell them you are considering paying off and transferring the balance to another credit card company that is offering you a lower interest rate. Simply asking for a lower rate often gets you a reduction since companies don't want to lose profitable customers.

Payment Priorities

Continue paying the minimum amount due on each card so that you will not incur additional fees such as late payment charges. Focus on paying off your small debts first. Start with the smallest amount and, when that card is paid off, go the next smallest. As you pay off one card balance, add the monthly payment amount you were paying on that card to the monthly payment of the card with the next lowest balance. For example, if your smallest credit card balance payment required a $50 minimum payment and you paid that off, add that monthly payment to the minimum payment you were making on the next lowest credit card balance. This approach will speed the rate you will pay off all of your debt.