Step 1: Break Debt Into Small Pieces

Generally, pay off credit-card debt with the highest interest rate first. But if you're feeling overwhelmed, it may help to focus on your smallest balance first.

"You need that pat on the back when you pay something off," says Sue Scott of Exton, Pa., who climbed out of debt after amassing $12,000 on five cards after both she and her husband lost their jobs in the same month.