Once you have made the decision to get out of debt, where should you start. That all depends on how much debt you have, and what type of debt it is. The first step in deciding where to start is finding how many different creditors you have, and the amount that you owe on each account. An easy way to do this is grab a pen and notepad and make a list. Look for all of your most recent statements and include everything on the list. If you are not sure how much debt you have, you can always check your credit report. You can check it once every year for free.

Once your list is made, order the debts by the amount that you owe. If you have several small balances you may want to consider paying those off as quickly as possible, so you can then place that amount towards a larger debt. If you decide to pay off the smaller amounts first, it is important to continue to pay at least the minimum payment on the larger amounts.

Using this method allows you to pay the smaller debts down first so that you can then add the amount that you were paying on the small amounts to the amount that you are paying on the larger balance.

There are several different methods to pay down debt, do not be afraid to find the one that works best for you.

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