Last Updated: April 24, 2010

When it comes to New Year's Resolutions, there are a few common ones. One of the most popular resolutions — Americans want to pay down their credit card debt in 2010. Unfortunately, many don't know how to do that. If you find yourself saddled with debt and can't quite figure out where to start, consider this checklist from FPA member Bonnie Hughes, CFP®, a principal at American Capital Planning.

1. Figure out how much extra money you can put towards your highest interest rate debt and begin to make that payment monthly.
2. Continue to pay the minimum on every other debt.
3. After one debt is paid off, pay down the debt with the next highest interest rate.
4. Stop using credit cards and go to a pay by cash system until you are out of debt.
5. Once out of debt, close all accounts except one card — use that card as your only card and only use it for cash flow you know you can PAY OFF at the end of every month.

Or you might consider this option too.

1. Order your debts from smallest to largest. Pay down your smallest debt first. This method may help you feel success quickly and thus, motivate you to stay on plan.
2. Continue to pay the minimum on every other debt.
3. After one debt is paid off, pay of the next smallest.
4. Stop using credit cards and go to a pay by cash system until you are out of debt.
5. Once out of debt, close all accounts except one card — use that card as your only card and only use it for cash flow you know you can PAY OFF at the end of every month.

Learn more about getting out of debt.