 TITLE: How to Pay Off 20,000 in Credit Card Debt CONTENT: Make a Plan to Tackle $20K in Credit Card Debt\n----------------------------------------------\nThere are several ways you can approach your credit card debt, and they all might play a role in your plan of attack. Before you start taking action, though, your first steps should be to assess the situation and understand your options:\n*   **Write out all of your debt.** If you have more than one credit card, write out the balance and interest rate for each one. You may also want to include the credit limit, so you know which cards are closer to being maxed out.\n*   **Create or reevaluate your budget.** Not knowing where your money is going every month can not only lead to overspending but also make it difficult to pay off the debt you've accumulated. If you haven't made a budget before, take some time to write out your income and expenses over the past few months, then categorize each expense so you get an idea of how you're spending your money. This can help you determine where you can reasonably cut back to put more cash toward your debt. If you already have a budget in place, consider reevaluating it to see if you can optimize your money management.\n*   **Set concrete goals.** With $20,000 or more in debt, it can be difficult to set a timeline for when you'll be debt-free. Still, it's still important to set concrete goals for yourself. For example, you can set short-term goals for paying off certain balances or simply for how much you want to put toward your credit cards every month in addition to your minimum payments. Meeting those goals will encourage you to keep at it.\n*   **Research different methods.** There are a lot of different strategies you can take to address your debt, many of which we'll cover in a minute. Not all of them are best suited for everyone, though, so take your time to research your options and find the best approach for your situation. Ultimately, you might incorporate several of the following strategies into your plan. When you're dealing with a large amount of debt, a more all-encompassing approach is often wise.\n*   **Develop your \"why\".** Even if you're feeling motivated right now to pay off your debt, it can be easy to lose that motivation over time, especially with a large balance. One way to maintain that motivation is to think about why you want to be debt-free. You may simply be seeking to get your head above water financially, or you might have a specific goal in mind, such as saving for a down payment on a house. Whatever your reason, putting it in writing can encourage you to stick to your plan.\n*   **Consider a moratorium on credit card spending.** If you're charging purchases to your credit cards while trying to pay them down, it can feel like you're taking two steps forward and one step back. Consider switching to cash or your debit card, so you can avoid further overspending and get out of debt as quickly as possible. Of course, this is only possible if your budget allows it, so you might start by simply taking steps to reduce how much you add to your debt every month. END