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"Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery." - Charles Dickens

Debt can be unavoidable sometimes. A mortgage or a student loan are sometimes the only way to achieve what you need from life. However, credit card debt is not unavoidable. Credit cards - and overdrafts - usually are high interest, and exist mainly to accommodate impulse spending and going over-budget. It is hard to extract yourself from debt, but it can be done.

1. Admit that you are in debt

It is very easy to ignore a situation that is spiraling out of control. Burying your head in the sand can be very tempting. However, if you ignore it, it's only going to get worse. By confronting your debt, you can deal with it.

Start by cutting up your credit cards. As well as meaning you can't use them on impulse, it is also a symbolic gesture - your commitment to getting out of debt.

2. Figure out how much you owe

Write down all the credit cards you have, and all the outstanding balance you owe. Arrange them by priority - the high interest ones need to be the first to go.

3. Work out your budget

The amount you can afford to pay off each month will be the equivalent of your income minus your living expenses. Be realistic - you have to eat. Take steps to lower your expenses where you can. Turn down the heating, switch to generic brand name foods, stop eating out, cancel things like cable television if you can. Cut back on drinking, smoking, and 'treats'.

4. Decide how much you are going to pay off on each one

You will need to make minimum payments on all your cards, but your first priority should be getting rid of any high interest cards. Consider debt consolidation. Talk to your creditors, explain the situation to them and that you are committed to paying them back. Most creditors will prefer to get their money at a later date or at reduced interest than force you into bankruptcy. Speak to a financial adviser about the best scheme for you, as it is very dependent on your personal situation.

5. Make those payments religiously

Do not skip a payment, or be tempted to use one credit card to pay off another credit card. Do not purchase anything else on credit. Stick to your budget, and stick to your repayment plan.

6. Raise extra income

You can pay your debt off faster by increasing your payments. Consider selling items, via a yard sale or ebay. Sell your books on Amazon. Get rid of your television, take a part-time job, ask for a raise, change jobs, ask for government benefits if you are entitled. Get rid of your internet for a few months - you can always use your local library.

Put the extra income towards your repayment plan. The sooner you get those debts paid off, the sooner you will be free.

Learn more about this author, Suzanne Fleming.
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