When you think of the word, “excessive”, everyone’s answer is going to be different, in terms of the money amount.  In my opinion, anything over $25,000 is excessive, but the guy next to you may say, “$10,000.”

Regardless, if you’re in the boat of excessive debt, it’s hard not to stress out, and I don’t blame you one bit, but if you’re not doing anything about it, it’s time to do something right now!

Let me give you 6 pointers that you can use, when you’re looking to solve your excessive debt problems.

#1 Money = Debt

We all know that there’s no magic button out there that you can press, and your debt is magically gone.  Unless you win the lottery, you’re going to have to pay off those debts by yourself.  In the past, I have wrote some great articles talking about side job ideas, as well tips for retiring early.  Find side jobs, sell junk, and apply as much money as possible toward your debts.

#2 Organize your bills

You don’t have to hire a firm to get your act together.  Instead, you can do all of this on your own.  Instead of going out, hiring someone, and having them charge an arm and leg, you’ll want to start to organize your bills yourself.  Gather up each bill, write out the interest rate, as well as the balance.  Put the highest interest rate balance on the top, and go from there.

#3 Attack the top bill

Once you organize your bills, you’re going to want to attack the top bill.  By doing so, you’re going to get rid of the highest interest rate balance.  You don’t want to give the banks anymore money than you have to.  By minimizing the bills with high interest rates, you’re going to be able to apply more money toward your principal.

#4 Always pay the minimum

You will always want to pay the minimums on all of your cards and never miss out on a payment.  By doing this, you’re going to save your credit score.  This is crucial if you plan on getting a home, car, or anything loan related in the future.

#5 Haggle with the credit card companies

Many people don’t know this, but you can negotiate with the credit card companies.  If you’re going to take this route, you’re going to want to have a lump sum of money to send the credit card companies way.  For example, if you had a $3,000 balance, you may be able to settle for $1,200.  The companies will want something, rather than nothing.

#6 Work hard and don’t give up

Nothing is better than getting out of debt, and once someone gets out of the hole, they never go back again.  Have a carrot at the end of the stick, and give yourself motivation.  Whether it be a vacation, a fancy dinner, or early retirement, you want to wake up each morning to work hard and kill your debts.

Try these tips and stay strong.  By doing so, let’s hope that you can attack your debt the right way.  Be sure to share your debt stories in the comment below and let us know how you did it!