5. Ditch your gold and platinum cards. The fees on these cards are outrageous. Unless you absolutely rely on the extra perks that come along with these cards, cut them up and pocket the $100 - $200 (or more) you save in annual fees—or use it to pay off other debts.

6. Don't pay an annual fee. Cards with annual fees are a prime candidate for the chop block. Listen carefully—you don't have to pay an annual fee. No ifs, ands, or buts about it. Just call your credit card company today and ask them to eliminate your annual fee. Competition among credit cards is stiff; your company won't be willing to lose your business over $20 or $40 (which is small change to them). You can fatten your wallet easily—simply pick up the phone and ask. Isn't saving an extra 40 bucks every year worth a painless two-minute phone call?

7. You can also use this technique to lower your interest rate. Tell your credit card company that you've just received a credit card offer from another company offering a lower interest rate. Ask, "Can you match a 14% (or whatever lower rate you may find available elsewhere) rate?" If they can't, take your business elsewhere. (See How to Save Hundreds on Your Credit Card Interest.)

Dolan Smart Money Move: Although rates have crept up recently, this is historically an excellent time to comparison-shop for the lowest interest rates on credit cards. We have close to the lowest lending rates since the 1960s, but will it surprise you to hear that many of the same banks that are paying only 2% interest on your savings account are still charging you interest rates as high as 21% on your credit cards?

Consumer credit is a great deal (for them!). Don't let them get away with that! You can slash your payments dramatically by getting credit cards with lower interest rates.

Follow these steps and you'll be well on your way to climbing out of debt. And don't forget to read Debt Clinic Part II to make sure you're fully armed in the fight against debt.

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