Get out of credit card debts faster!

We often don't realize how much we are in debt until the monthly credit card statements come in. By then, it's too late, and we end up in credit card trap. We buy more than we can afford and expect to pay debts later, when we have more money. Unfortunately, the more you owe, the more interest you owe, creating a vicious cycle. Panicked? Don't worry. Follow our six steps, consult a financial advisor, and get down for some serious cost cutting measures!

1. Use your savings to pay off your high-interest loans
It's good to have some emergency money, but if you're paying 24% interest on credit card debt and are only making 4% interest on money in your savings account, it makes sense to pay off high-interest loans with your savings. It's probably the best investment you'll ever make!

2 Reduce your interest
Some credit cards have interest rates of up to 24%. With high rates hanging over your head, it may seem impossible to get out of debt. Don't give up, though: You may qualify for a credit card with a much lower interest rate, and can save money by transferring debt to such a card. Some card companies offer extremely low introductory rates. Remember that the interest will increase later -- make sure you know what the rate will be. If you're unable to pay off your debt in the introductory period, and then the rate skyrockets, the card may not be worth it.

3. Consolidate your debt
Consolidating debt on a lower interest rate card can reduce monthly payments and shorten the amount of time it will take to pay off your debts. You can transfer credit card balances to one low-rate card. Banks, credit unions, and finance companies also offer loans to help people pay off student loans, medical expenses, and other types of consumer loans.

Note: Once you consolidate, be careful not to burn more money. Leave those credit cards at home!

4. Pay more than the minimum amount due
If you have credit card debt (or even a mortgage), you can save oodles of money and pay off debt faster by paying more than the minimum amount due. Even if you pay just $25 a month more, you may save thousands of dollars in the long run. Save tons of money and get out of debt years earlier!

5. Cut spending
If you spend less, you'll have more money to pay off your debts. In a nutshell, buy only what you really need and leave those credit cards at home!