Ten Easy Ways to Zap Your Debt

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Lewis Schiff

1. Stop charging! If you can't afford to buy something without using a credit card, do without. This may feel a bit painful at first, but many people find that the things they've been buying with credit are things they really don't need.

2. Double (or triple or quadruple) your payments on the credit card with the highest interest. This card is costing you the most, so concentrate on paying it off first. Once it's taken care of, move on to the card with the next-highest interest.

3. Transfer all your balances to one low-interest card. Those pre-approved credit card applications that arrive in your mailbox might be of some help in paying off your debt. They often come with a low, introductory "teaser rate" good for the first few months you have the card.

4. Use your "extra" money. Whenever you receive "extra" income--like a tax refund, gift, or raise--commit it to credit card repayment. Since you hadn't planned on this income, you won't miss it, and those extra payments can make a big difference.

5. Dig into savings. If you have some money stashed away in a low interest account (like a savings account), think about using it to pay down some debt. Your savings account is only paying you one or two percent interest, but you're paying much more than that on your debt.

6. Consider finding an extra source of income. A second job doesn't have to be a huge time burden--even a few hours each weekend will earn you a nice chunk of money each month that will go a long way towards speeding up your debt repayment.

7. Swap your credit card for a debit card. You'll never be able to spend more than you have, and will have all the conveniences of a credit card.

8. Treat your credit card spending like cash. Make an entry in your checkbook each time you use your credit card.

9. Use the cheapest credit possible. If you anticipate a large upcoming expense, arrange for a home equity loan instead of using a credit card. You'll pay a lower interest rate, and the interest may be tax deductible.

10. Shop wisely. Don't give in to impulses. If you see something you want, walk away and ask yourself the next day if you still want it. Use a list--and stick to it.

From "Ask the Armchair Millionaire" featured each week on CNNMoney

For more Lewis Schiff articles and resources, click here.

Lewis Schiff is the author of The Armchair Millionaire (Simon and Schuster) and the creator of ArmchairMillionaire.com, the leading personal finance solutions company and web community. Each week, his column, "Ask the Armchair Millionaire" is published on CNN.com and Money magazine. To find out how you can eliminate debt, build a $1 million portfolio and boost your income, go to: ArmchairMillionaire.com.