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We talk a lot about paying off debt and getting out from under large interest payments. Indeed, financial health and a good credit score make managing the financial surprises in life so much easier. It is important to remember though that debt isn’t the enemy – it is a tool.

Judicious use of debt is what allows us to live in a house where we can paint our walls and plant a garden instead of renting an apartment with loud neighbors and a nosy landlord. Utilizing a credit card for regular expenses you are going to make anyway and then paying off that card every month can actually improve a credit score (aka lower interest rates in the future) and rack up some frequent flier miles for a much-needed family vacation.

It is in using our available credit, being mindful of that magical 50% debt to limit ratio, and making timely and consistent payments that we get to fully utilize debt as a tool for bettering our lives. Having this tool available to us will help us ultimately realize our dreams of traveling through Africa, driving our own speedboat, or my favorite – Not ever having to pay an unreasonable bank fee again.

The question is: How do I get there? How do I turn debt around from evil dragon breathing down my neck to almighty sword available at my command?

The answer is:  It is hard work, it can take a long time, and there can be a frustrating feeling of sacrifice as we buy that used Subaru instead of a new Lexus. But consider this – Each and every one of those financially sound decisions is a building block toward financial security. Each time we opt to forego a third black sweater in the closet and instead make an extra $50 payment on a credit card, we place another solid block in the financial foundation of our life. When we make do with the computer we have for one more year and put a little extra away in savings, we secure a safety net for ourselves against the unknown.

These aren’t sacrifices – these are the stones we move to create a financial sanctuary where we are free to do as we like with our money. The three little pigs is more than a quaint children’s story, it is an allegory for how we can secure our future with some effort and frugal choices today.

Once we are in control of our finances, we have a full tool belt – sword and pet dragon included – for managing our future. Banks and credit cards will rally for our business. Car dealerships will compete for our attention with low interest rates and free extras. We will get to make our own decisions once again, and financial freedom is the ultimate reward.

When it comes to Christmas, people often throw their budgets out the window. Credit card companies sing carols in the halls as the debt piles up and their bonuses get bigger. People just assume they can take care of it next month or decide they’ll figure it out after the holidays because Uncle Fred really needs that food dehydrator.

Once the presents are unwrapped and reality sets in, you realize that your credit cards are bulging with debt and you need to make some decisions on how to get it paid off before next Christmas.

Pay Off as Much as Possible Right Away

Odds are most of the Christmas shopping was done recently, so the interest hasn’t been applied to it yet. Try and take care of as much of the debt as possible before that interest hits. It doesn’t matter if you make a payment every week or so, as long as you are paying down that debt. You should start with the highest interest rate cards first and work your way down. Do not pay only the minimums as this can take literally years to pay off the debt.

Make a Plan

Call each of your credit card companies and find out exactly who much you owe on each card, what their monthly interest rates are and when payments are due. If you have any credit cards that may go over the limit because of interest, then take care of them first. Make a plan to pay down and eliminate the debt each month. The last thing anyone wants is additional over the limit fees. Also, make sure you pay your bills on time and save yourself late fees.

Consolidate the Credit Debt

If you have a home equity line of credit or can get a home equity loan, then you can completely pay off the credit card companies, and instead, make a single loan payment. The interest rate on the loan is likely to be much less than the credit cards and you don’t have to worry about juggling several different payments. If you do chose this option, then try to stay away from using the credit cards until the loan is paid off. You don’t want a large monthly loan payment and credit card payments as well.

Work With A Credit Counselor or Repair Expert

If the debt is overwhelming and you don’t feel like you can take on the debt yourself, then you can work with a credit counseling or credit repair service. Credit repair services like Ovation specialize in helping people with large debts make the right decisions and will even work with credit card companies to help save on interest rates and monthly payments.

Christmas is a time of great joy and celebration, but for many it’s also a time for large debt. Don’t get stuck in the quagmire; follow these tips for getting your life back on track after the holiday season.