If debt is keeping you from reaching your goal of financial independence, it's time to turn the tables. Here are five popular strategies to help you pay out of debt quicker.

Step 1. Get The Picture of What You Owe
Understand exactly what your debt situation is by filling out the table below:
List of Debts
__Creditor ____ Interest Rate Balance Owed Minimum payment

Show everything you owe. List all credit cards, mortgages, home equity loans, car loans, personal loans, boat loans and any other debt you may have.

Step 2. See How Low You Can Get The Interest Rate to Go
Try to see if you can lower the interest rates you pay. The lower the interest rate you pay on your debt, the faster you get out of debt.

One of the best tools is to consolidate to as few credit cards as possible. If you are carrying a balance with them, they want to keep you as a customer. Call and ask them for a lower interest rate. Ask them what interest rate they can offer you if you transfer a balance from another card. Make sure they do not give a teaser rate that is short term. Ask for a low rate that stays low until you pay off the transfer amount. Be sure to ask about the transfer fee. Remember that fees are always negotiable. Be aware that some carriers give you one rate for balance transfers and a higher rate for purchases. Carriers apply your payments to the lower interest rateportions of your debt first. Even so, the blended average rate may still be lower than what you owe on several separate cards. If none of your current card carriers will work with you, shop for a lower interest rate card.

You may choose to eliminate the highest interest rates debt by paying them off with money from the equity in your home. Be aware of the danger in taking this route of moving debt from an unsecured loan (credit card) to a secured loan (secured with your house in a mortgage or home equity loan.) What happens if you get behind on a credit card? Not much. But if you get behind on a mortgage or home equity loan, you could be facing a foreclosure in only two months.

Step 3. Stay On Track By Developing A Payment Schedule
Develop your payment schedule. Keep your momentum by knowing when each debt will be paidoff. Prioritize by interest rate. Pay off the highest rates first. When the first debt is paid off, apply that money to the next highest interest rate debt and so on. This helps a snowball effect take place. By paying off the highest interest rates first, you pay less interest overall and you end up with more money to pay off the other debts you have. Try to pay more than the minimum payment required. If you can only make a minimum payment, make that payment as soon as you receive your bill. Most credit cards calculate interest due based on a daily balance. Even if you can only make a minimum payment of $20, it will help you lower the interest you pay the sooner you make that payment.

Step 4. Mind Your Pennies
Watch your pennies. This strategy is not fun but you need to write down everything you spendfor a month. For a family, have each person do this. Don't make judgments; just track what is spent. Jot down everything you spend each day. At the end of the day, total it up. Become conscious of what you spend. When people begin a diet, a nutritionist asks them to write down everything they eat so they learn about their behavior. Just apply this same principle to your spending habits. At the end of the month, see where your money is going and determine if you can make little shifts that won't affect you drastically but will allow you to apply a few more dollars to pay down your debt.

Step 5. Stay On Top Of Your Plan
Stay on top of your debts. As you pay off certain debts, redo the table in step one. Look at your statements each month and make sure your interest rates are not going up. Call your carrier ifthey do. Reexamine your spending habits periodically.

Remember that over time, you'll have more money to pay down your debt just because you are saving by eliminating the highest interest rate debts first. Implementing these five steps can lead to a Happier New Year!