Kick your debt habit

2008 was marked by massive 401(k) losses, more people out of work and more homes in foreclosure. But 2009 can be different for your wallet. Here is how to kick your debt habit.

1) Review your habits

Credit Card debt is one of the most costly out there. And sometimes our habits - like only paying the minimum amount on a credit card – can dig us deeper into debt.

Let's take a look at this example. If you have a balance of $5,000 dollars and you only make the minimum monthly payment, it will take you 351 months to pay off that debt. And you will have paid over $6,500 in interest.  We're assuming the interest rate on this card is 14 percent.  Now if you took that same beginning balance and made fixed payments of $120, you would have that debt wiped out in 58 months. Your interest savings: $4,600 dollars.

2) Lower your interest rate

Just ask for a lower rate. Here's when you stand a good chance of winning: When your  annual percentage rate is over 12 percent; f you've made timely payments for 6-12 months; if your rate was raised several times; and your balances are consistently less than 30 percent of limit. Keep in mind that people who call to negotiate a lower rate succeeded more than half the time.

We will bring you tips and strategies all this week on reducing your debt. Send us your thoughts, questions or ideas to me at Gerri at CNN.com.