Things to do to get out of debt

1. Credit cards.

The average American household has nearly $9,200 in credit card debt, and the average interest rate runs in the mid- to high teens at any given time.

2. Debt is good.

Borrowing money for a home or college usually makes good sense as long as you don’t borrow more than you can afford to pay back.

3. Debt is bad.

It’s not a good idea to use a credit card to pay for things that are consumed quickly, such as meals or vacations, if you can’t afford to pay off your monthly bill in full in a month or two.

4. Curb on spending.

Many people spend thousands without thinking. You should write down everything you spend for a month, cut back on things you don’t need, and start saving the money left over or use it to pay back your debt.

5. Highest-rate debts.
You should pay down the balances of loans or credit cards that charge the most interest.

6. No minimum trap.

If you pay the minimum due on credit card bills, you’ll barely cover the interest you owe. The debt will continue to grow instead of going down.

7. Paying down your mortgage may not be the greatest idea.

Don’t pour all your cash into paying off a mortgage if you have other debt. Mortgages have lower interest rates than other credit card debt.