When it comes to debt, the best thing to do is pay it off. But, there are good ways to pay off debt and there are bad ways. The bad ways can require unwarranted compromise, and can ultimately leave you in more debt than you started. To avoid paying off debt, stick to the good ways and avoid the bad ways.

The Spending Factor: The smartest way to get out of debt is also the easiest: stop spending money. If you must spend, use cash or checks, steer clear away from credit cards. A bad way to apply this logic involves simply transferring your debt from credit card to credit card and never actually ending spending.

The Teaser Rates: Teaser rates and low interest rates are offered by many credit cards. This is appealing to the person in debt. However, there is a good way to chase these and a bad way. The good way involves looking for a fixed rate, rather than a teaser rates. Teaser rates only last for a short time, after which a higher interest rate sets in. You usually end up owing more than you started.

What to Pay off First: When you are deciding what debt to pay off first, the smartest thing to do is start with the highest interest debt. Focus, at first, only on your non-deductible debt. It may seem enticing to equally divide your payments among all the bills you owe, but it will save you money if you get rid of those with the highest interest and then move on to those with lower interest. A bad way to go about paying off debt is to not only focus on low interest debt, but to also focus on debt that can be used as a tax write off, such as home loans.

Where to Borrow: Anyone who has ever been in overwhelming debt has probably found themselves looking for places to borrow. Consolidating your debt isn’t a bad idea, but it’s important to borrow from the right places. A home equity loan, for instance, is a good idea. A loan against your retirement fund is not. It’s also not a good idea to take out or rack up charges on other credit cards. Robbing Peter to feed Paul, so to speak, will leave you on a financial treadmill, and could even leave you further in debt. Instead of juggling your debt yourself, try soliciting the help of a debt management or debt settlement company.

What to Close: For anyone who has ever been in debt, it’s easy to swear you’ll never do it again. Avenging your financial well being, you swear that you’ll close and cut up every credit card you have ever had. It might seem like the smart thing to do, but actually it’s not. Closing all credit cards can hurt your line of credit and drastically reduce your credit score. Instead of closing all your accounts, keep a few open, and just use them wisely.

How Quickly to Pay: Believe it or not, it is actually possible to pay debt off too quickly. Now, this doesn’t apply to credit cards or other high interest, non-deductible debt. But, if you have debt that is tax deductible, such as  student loans, the smart thing to do is to pay them off, but don’t put yourself in a precarious situation by doing so. It is better to save money and prepare an emergency fund than it is to wipe out a low interest, tax deductible debt.

Getting out of debt is always a good idea, but the best way to go about it is the smart way. Going about it the wrong way will likely leave you with more financial hardship than you began. Instead, make an attack plan or get a professional debt company to do it for you. Once the plan is set, stick to hit and watch your debt disappear.