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You've thought about it, dreamed about it... now you can do it. Be debt-free in 2008. Here's how.
1: Get a grip

Americans were expected to charge more than $148 billion this holiday season. And that holiday debt is on top of the normal debt load we carry - almost $10,000 according to CardTrak.com.

But don't wait until all those bills start rolling in to figure out just how big of a hole you're in. You can get that info now. Go online and set up an account so you can see what those numbers are.

"If you have to borrow money to pay off your credit card bills, your credit card spending is out of control," says John Ulzheimer of Credit.com.

You'll also need to take a cold hard look at what all your debts are. If your monthly debt is between 15 and 20 percent of your income, you have too much debt and you should start paring down your expenses.

If that figure is higher than 20 percent, you may need to enlist the help of a professional.
2: Prioritize

Credit card debt is one of the most costly debts you can have. The average interest rate is higher than 14 percent. However, many people may be paying rates as high as 30 percent.

Since credit card debt is so expensive, you'll want to pay it off first. If you only pay the minimum payments, it could take you up to 30 years to pay off that debt.

Source : http://money.cnn.com/