With the holiday season descending upon us, it is hard to ignore the fact that a new year is just around the corner. Consumers are cautiously optimistic about an improved economy in the coming year despite the number of people who are still struggling with uncontrollable debt. As the economy begins to strengthen during the recovery period, those who are saddled with debt might miss financial opportunities that are on the horizon. Here are a few tips to help pay down debt once and for all. These proven strategies can work individually or combined with the end result the same; getting out of debt.

• Have the right attitude- We all assume money problems are solved by having more money. While having more money is certainly helpful, it is the way in which you manage your money that has the biggest impact on your financial security. Making the right financial decisions requires having the right mindset. Getting out of debt requires sacrifice and discipline as well as a willingness to commit to whatever process you decide to use for debt elimination.

• Apply savings toward debt- No one wants to give up the security of savings in the event of an emergency. In fact, there are conflicting opinions as to whether or not you should cash out your savings to pay off debt. When it comes right down to it, if you have high interest debt you are losing more money each month you carry a balance. Taking money out of your savings account (which undoubtedly is earning interest at a much lower rate) will pay off in the long run as your debt is eliminated.

• Avoid the minimum payment trap- Most people know that paying only the minimum payment is a guaranteed way to stay in debt forever. Unfortunately it is easy to fall into this habit and pay only what is required each month while “extra” money gets absorbed in everyday expenses. Unless you are experiencing a true financial hardship, most people can find ways to save more money each month that can be applied toward credit card payments.

• Contact your creditors- Creditors are often willing to renegotiate the terms of your contract if they feel you are on the verge of not being able to keep up. This is not to say you should lie to your creditors, however you will have to be aggressive in order to speak to someone willing (or able) to help lower your interest rate. Explain that without some cooperation from their end you may not be able to continue making payments under the current conditions, most creditors would prefer to help you repay your debt versus force you into more drastic measures.

• Know when you need help- The majority of people in debt should be able to repay their debt by simply working hard and paying as much as possible each month to bring their balances down. If you are doing everything you can and still see no sign that your balances are going down, you may have to accept the fact that you need help. This may come in the form of credit counseling, debt consolidation, debt negotiation or bankruptcy. Each of these methods have pro’s and con’s which should be considered before deciding which is right for you.

Paying off high interest credit card debt should be your main priority moving into the new year. Each day that you spend money on interest and various fees is a lost opportunity to make money. If you have one New Year’s resolution that you keep, make it the resolution to be financially secure by eliminating debt.