• Don't over use credit cards.bank statment and cut credit card image by Warren Millar from Fotolia.com
  
  Increased consumer debt is an ever-growing problem worldwide. Millions of individuals who find themselves in debt are struggling to get out of it, but it's a process that won't happen overnight. However, there are several simple ways to eliminate debt. With due diligence, it is even possible to pay off these balances early.
  
  

Increased Payments

• One of the best ways to pay off debt early -- saving money in the process -- is to make more than the required minimum payment on any type of loan. Doing so on a monthly basis will save you the most. If your budget doesn't allow it, you will still be ahead of schedule if you pay extra whenever you can. Consider making small concessions such as occasionally packing your lunch instead of eating out. Use the money you save to pay down a balance.
  
  Credit card companies typically require a payment equal to 2 to 3 percent of the cards current balance. Payments are calculated this way so that financial institutions earn the maximum interest over a prolonged period of time. For example, a minimum $60 payment on a $3000 balance would take almost eight years to pay off and add hundreds of dollars in interest charges.
  
  

Stick to a Budget

• Creating a realistic budget and sticking to it is beneficial when it comes to early debt re-payment. It is helpful to keep track all of your purchases, even the least expensive ones, for up to 30 days before you put the budget in writing. Armed with this information it is much easier to see where you are overspending and where you can cut back. The money you save by cutting out certain expenditures can be put toward your debt.
  
  Ways to cut back include shopping at second-hand stores, using grocery coupons, downgrading or eliminating cable or cell phone service, utilizing the library and making handmade gifts.
  
  

Debt Snowball

• Many consumers choose to pay down their debt using what is commonly referred to as "snowballing" your debt. Make a list of all of your debts in order of the highest interest rate first. Pay minimum payments on all of these accounts except the one at the top of the list. Any extra funds should be used to pay off this balance as quickly as possible. Once this is accomplished, concentrate on the next account on the list. Apply the minimum payment plus the money that was earmarked for the account that you just paid off. Typically, the further you get down the list, the faster you will see a decrease in your overall debt.