Getting out of the red can be easier said than done.
Plenty of consumers start the new year with extra debt. More than one-third of Americans took on new debt from holiday spending, according to CreditCards.com. Worse, Consumer Reports estimates that 7 percent of consumers went into the holiday season still owing on holiday purchases from 2013. The results, combined with existing debt, can be staggering. CardHub.com puts the average household's credit-card debt at $6,802—and climbing.
To figure out a payoff plan, make a list of all your credit-card debts, including the balance owed and current interest rate. "The right strategy really depends on the psychology of the consumer and what motivates you," said Curtis Arnold, founder of CardRatings.com.