Debt is a force that can totally take over your life. And you might not even realize that it is happening. Then one day, you wake up and there it is. Your credit cards are all maxed out. You can’t seem to juggle things the way you used to. There just isn’t enough money. You don’t want to answer the phone.

And you are loosing sleep trying to figure out what you are going to do next.

There are some amazing statistics out there that say the average credit card has an interest rate of 18.9% and a balance of $7,000. The average household is reported to have at least 10 credit cards. And most people can’t make their minimum payments. Is that a surprise?

What can you do to get out of debt?

The first thing you have to do is committ. You can’t just say you are going to get out of debt. You have to mean it. And for many, this really doesn’t come until they are at that swim or be eaten by sharks moment. I’m talking rock bottom. Believe me, this feeling stays with you and motivates you to leave those credit cards behind for good. You have to really mean it with all that you are.

You have to take the time to create a budget and stick with it. All you have to have is a pen, paper and calculator. You need to know where your money is going. See what you can cut out and what you can’t. And remember, a budget doesn’t always come together all at once. It may take a few months to find a way that works for you. Take the time and work on it. It is the one true way to get out of debt and start saving money.

Sit down and make a list of all your debts. Write down the amount you owe, the interest rate and the monthly minimum payment. Then create a plan to pay off this debt. Start with the debt with the highest interest rate first. Then work your way down to the lowest interest rate. This is the most financially sound way to pay off your debts. It will save you hundreds in the long run.

Now, find all of your credit cards. Assemble them in a line in front of you. Call the company, cancel the card, cut it up and repeat. Do this until they are all done. You don’t want them anymore. You can’t pay off your debts just to be tempted to get back into this spot again. Remove the temptation and you will be half-way there.

Remember, credit is not free. It isn’t your money. You will pay a lot for using it. If you use a credit card frequently, chances are that you are buying things that you wouldn’t buy with your “real” money. Get rid of the credit card and take a close look at your purchases.

Think of it this way. If you have credit card payments that total $500 a month and you got rid of them and saved the money instead, you waould have over $1 million in 30 years if your savings earned a mere 10%. That is your retirement right there.

What better reason to get out of debt?

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!