• There are ways to eliminate or pay down debt.credit 3d sign image by onlinebewerbung.de from Fotolia.com
  
  Getting out of debt can raise your credit rating and create extra income. However, knowing the best way to pay off debt can prove challenging. Also, if you have a lot of debt, knowing where to start is equally challenging. Fortunately, there are techniques to help you alleviate debt and regain control of your money and credit.
  
  

Know Your Balances

• Some consumers do not want to face their debt. Therefore, they do not calculate their balances. However, if you want to get out of debt sooner, it helps to gather your credit card statements and add up your balances. Knowing how much you owe your creditors can help you create a debt-elimination strategy.
  
  

Review Personal Finances

• Being debt-free calls for cutting back on your spending and using your extra money to reduce your balances on credit cards. However, before you can decide on a new monthly payment, you've got to review your finances to see how much disposable income you have after paying your essential expenses. Take your monthly income and subtract your monthly expenses (mortgage, auto loans, utilities, food and insurance) from this number. Getting out of debt might necessitate forgoing hair appointments, massages and other luxury services, so don't include these expenses in the budget.
  
  

Make Higher Payments

• Using money from a personal savings account is the easiest and fastest way to get out of debt. However, if you don't have enough in savings or if you don't want to deplete your emergency account, use your extra money to make higher payments. Paying only the minimum doesn't get rid of debt faster. Quite the opposite, minimum payments usually only pay down the new interest charges and barely bring down the principle. If the minimum payment is $20, aim for $100 a month. Sending this extra money each month can pay off a $1,000 balance is about ten months.
  
  

Get Rid of Plastic

• Keeping credit cards locked in a safe or cutting the cards and tossing them in the trash helps curtail the desire to spend money you don't have. Closing the account damages your credit rating, so it's best to keep the account open. Bring cash when shopping and remove credit cards from your purse or wallet.
  
  

Increase Income

• Living paycheck-to-paycheck contributes to high debts because you may not have enough funds to meet your monthly obligations. Be proactive and seek ways to generate extra money to help get rid of debt. Asking your employer for a raise if you're eligible, finding secondary employment, or using your skills to start a home-based business can create additional money. For example, earning an extra $400 a month ($100 a week) can get rid of a $3,000 credit card debt in seven to eight months.