“Mark, I have 6 credit cards and can’t stop spending on them, what should I do?” -J

Well, here are 5 steps to free yourself from the credit card trap.  Designed with your situation in mind.

1. Cut up ALL of the cards except one that gets put anywhere but your wallet- This has the lovely effect of stopping your spending on cards, and forces you to only buy things if you can actually afford them.
2. Use a proven payoff plan-  There are two routes to take, but the one I’m going to recommend gives the greatest psychological reward.  Take all your cards, and order them from lowest balance to highest balance.  Pay the minimums on all of the cards, then put any extra money you can get towards the lowest balance card.  (Ideally shoot for at least $100 extra a month, but any more than the minimum will help.)  Once that card is paid off, take the amount you were paying ($100 + the minimum) and add it to the minimum payment on the next card.  You will be paying more, and the debt will go away faster.  Continue until all the cards are paid off.
3. Consider consolidation- If your credit is good, you may be able to qualify for an unsecured loan at a lower rate than what you are paying on the cards, this will allow you to pay off the cards in one fell swoop.  Be careful that you don’t use your cards right after doing this though, or you will just be putting yourself in a worse situation.
4. Bring in a partner- Get a close friend or spouse to keep an eye on your spending, give them the power to take your credit cards away if they have to.
5. Reward yourself when the cards are paid off- Use the payment for the next month to go buy something extravagant, you earned it, and you’re paying cash for it so you won’t be paying more later.

If you have a financial situation you would like Financing Your Family to look at, feel free to post in the comments section, you can keep your name annonymous if you wish.