How I did it: I had three cards; what I did was make minimum payments on two while putting a very large amount of cash into the third, until it was paid off (I picked the one with highest interest to pay off first); then, I made minimum payments on one while paying off the second; then I finally tackled the card that had the best rate.

I did get some help - Christmas money, for example - but the biggest deal was not making any large purchases during this time period, and instead focusing on getting the cards paid off.  Now, I can finally save.

Lessons & tips: Remember, every dollar you spend now on a credit card is real money that you will have to pay back someday.  Don't buy it if you wouldn't be willing to hand over cash for it.

Consider transferring any monthly payments you make on a credit card (like subscriptions to services) to your bank account instead; this will help you stay on top of your credit card balance and keep the interest from piling up.  Just make sure you always keep a little bit of money in your checking account to cover these regular expenses.

The short-term giving up of some luxuries is worth it for the long-term satisfaction of being debt-free.

Resources: Always used online banking and online tracking of my credit cards to keep on top of what I owed, how much I could spend, and to make online payments.

Jan 02, 2009, 09:36AM PST | 1 comment | 5 cheers