While there’s no denying the fact that credit cards have made it extremely convenient for us to buy goods and make payments for services without carrying around large amounts of cash, there’s a downside to these pieces of plastic that many Americans are still ignorant about. Making just the minimum payment every month on your balance can put you so deep in debt that you’ll spend the rest of your life paying back both the principal and interest.

Getting out of debt takes an enormous amount of discipline and dedication; the first step is to resolve never spend frivolously and never to use credit cards again unless it’s absolutely necessary. If you do use your card, make sure you pay your entire balance every month so you don’t have to contend with the high interest rates at a later date.

Once you decide to do something to dig yourself out of debt, there are various alternatives (other than filing for bankruptcy) available to you. It’s a matter of borrowing from Peter to pay Paul, but if you’re sensible enough (and lucky), you may get competitive interest rates and be able to pay back your creditors in record time:

• Take on a second job where you can earn more money to pay off your debt.
• Take out an unsecured loan where you do not have to pledge any property you own as collateral against the money you borrow. If your credit rating has been good up to this point, lenders may be willing to let you borrow money without asking for security. Make sure the interest you pay on this loan is considerably less that the interest you owe on your debt. Unsecured loans can be obtained from close friends or family members who believe in your ability to repay your debts.
• Transfer your debt to a 0 percent balance transfer credit card where you’ll be allowed to pay off the money at a considerably lower interest rate. With this option, you need to be aware of any transfer fees involved, how long the low, initial interest rate lasts, and how much the rate will increase once the grace period expires. Make sure you pay back the money you owe before the offer period is up.
• Take out a secured loan by putting up some piece of property you own as collateral. Most lenders will be willing to give you money against the security of your home or car at low interest rates. This option may backfire if you do not make your payments on time as the lender is within the law in repossessing the collateral.
• Take out another mortgage on your home if the interest rates are competitive enough.
• If your mortgage deal is almost over, re-mortgage your home to obtain some money to pay off your debts. This option will provide you with a low interest rate that is easy to pay off.

Remember, interest rates will vary according to your credit scores and history. Lenders are allowed to charge you a higher interest if your score reflects that you’re a credit risk. So make sure, not only that you get out of debt quickly but also that you never fall back into the same situation.

Sarah Scrafford is an industry critic, as well as a regular contributor on the subject of money management. She invites your questions, comments and freelancing job inquiries at her email address: sarah.scrafford25@gmail.com.