When you are burdened with debts it is easy to think, "Why should I even try to live within my means? No matter what I do, I can't seem to get out of debt." It is easy to rationalize continuing in a cycle of overspending, when you are unmotivated and feeling the heavy burden of debt. When you get your monthly credit card bill and see that even though your efforts to pay it down were made, it is still a high balance.

So, what can you do to take a more rational approach to debt, and not let those darn debts burden you down, and make you demoralized and frustrated?

First, set up a debt repayment plan.

The key to doing this well is to set it up in a way that you will see true progress in getting out of debt, but not live so miserly that you can have no fun while you are at it. So, the first portion of your debt reduction plan needs to focus on simply not over-spending further. So, curb your spending so that you do not get further in debt. If you are "Working on getting out of debt" and you keep getting further in debt due to uncontrolled spending, it can be demoralizing. So, don't just focus on paying down existing debts, focus on not accruing any more.

Second, track it.

You need to track your spending, and your debt repayment. Debt is a burden, but if you can see that burden getting lighter in tangible forms, it makes it far easier to keep going at it and stay motivated. So, make a list of all your debts, how much you owe, how much the interest is, what the minimum payments are, and when the term of repayment ends. Then decide which debts you will focus on paying down the fastest. These should be either the smallest debts (as eliminating a debt, no matter how small can be very rewarding, and motivate you to continue), or the debts with the highest interest (as they are the debts that are costing you the most). Then, each time you make a payment, record how much you now owe, how much went to principle, how much to interest. As you see the amount owed going down, and the amount of each payment being applied to principle increase, it will be extremely motivating, which will help you get out of debt faster.

Third, save money.

Those darn debts have a way of sneaking up on you. Your car breaks down and you do not have the cash to fix it, but you can't get to work without your vehicle, so you put the repairs on your credit card, and suddenly all that progress you have been making to pay off your debts seems fruitless. If you ever want to conquer debt, save money for those hospital bills, car repairs, home repairs, etc. that have a way of springing up on you.