So what will you do when those credit cards are paid off?

Why wait to decide?

While you're in the middle of executing your credit card debt payoff plan, draw up your goals and plans for what you'll do with all the extra cash on hand.

Start with your short-term goals. Do you have at least three to six months' living expenses in a savings account? If no, then you'll want to put the cash you're spending now on minimum payments into this fund until you've accumulated enough.

Will you need to make a large purchase in the near future? Will you need to replace your car or major appliances? Does your home need expensive maintenance, such as painting, flooring or new windows? Is there a big event on the horizon that will require cash? If so, make a plan to use your credit card debt cash to put towards this savings goal.

Do you have adequate life insurance? You should! Use the extra cash to pay for an inexpensive term life insurance policy that will protect your family in case tragedy strikes.

What about health insurance? We all know it's expensive, but we also know your finances can be devastated without it. Could you use the money you're paying now on credit cards for health insurance premiums? If so, chances are you'll be sleeping much better at night.

Once you've accounted for your short-term goals, you need to consider long-term needs.

Do you have a retirement account? If there's a 401(k) or 403(b) plan available where you work you should seriously consider contributing, at least up to any employer match available. Employer matches are 100% returns on your money! If you don't have a retirement plan available or the investment options in your employer's retirement plan are dismal, then open a traditional or Roth IRA. Your accountant can tell you which is best for you. Contribute as much as you can up to the $4,000 limit per year. Sometimes it's best to do both: contribute up to your employer match to get 100% return on your money, then contribute to your IRA.

If you have children, are you saving for college? Since you can withdraw funds for educational purposes from Roth IRA's, you're better off making sure your retirement is adequately funded before you begin saving for your kids' college. But if you've already met your retirement needs and still have extra funds left over, consider setting aside money for that big day when Junior heads to State. If your child is currently 10 years old, you'll need to save at least $600 a month in order to have full tuition saved eight years from now. That's a big chunk of change! It's never too late to start, but the earlier, the better.

Paying off your mortgage early is a huge boost to your financial wealth in your late forties and fifties. Not only that, it will greatly enhance your ability to pay for college, save lots for retirement, and maybe even retire early. So, in addition to saving for retirement and/or college, a long-term financial goal may be to begin making extra payments on your mortgage to pay it off early.

Keep in mind that you can work on more than one goal at a time. Let's say you are currently spending $700 a month on your credit card bills. You decide that your two main priorities are savings and retirement. You decide to contribute up to the maximum your employer will match at 50% in your 401(k), which is 6%. That will cost you $250 out of each paycheck, leaving you with $450 cash remaining. You take that $450 and put it into a money market mutual fund savings account earning 5%. In one year you'll have $5400 saved towards your three to six months' living expenses! Plus, you'll have $4500 contributed to your retirement account, which will compound and grow about 8% on average over 30 years.

Constantly check on your plans and consider how important it is to have goals for your money beyond what you're currently doing. Not only will it keep you motivated, it'll save you from the mindset that damages more home finances than any other: "I'll do it when I have the money".

Create a purpose for your extra cash now, even before it materializes. Your balance sheet will thank you!

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