basics such as food, clothing, shelter, and debt servicing. Once you have finished off some debt, available cash will be freed up to pay off another debt item sooner.

 

6. Get a second job, get a third job.

 

You find that your paycheck is just passing through your hand straight to your creditors. Maybe what you can do is try to get a second job or a third job to support your lifestyle. In case this option is not possible, go back to budgeting from your present paycheck.

 

7. Live below your means.

 

One of the leading causes of getting into so much debt is the tendency of people to live beyond their means, that is, spending more than what they earn. Stop right now. As we have said, review your spending habits, budget what you just earn and go back to the basics. Try to live within 60 to 80 percent of what you earn, where the balance can be put to service debt.

 

8. Rank all debt according to their interest rates

 

How much debt do you owe? Have you listed them all down? Next to it, write down the interest rate you are paying for it and the term of the loan. You might find that most of your debt may be short term debt that once you have budgeted your payment plan, you may be debt-free sooner than you think. Start to pay more for those with higher interest rates or start with the lowest balance to get it out of the way. Either way, there is a sense of accomplishment as soon as one debt is eliminated from the list.

 

9. Renegotiate with your creditor

 

Individuals think that being in debt is the end of it all and that consolidating all their debt would be the answer to their debt management issues. Have you tried to talk with your primary creditor and negotiated for a longer term at the same interest rate? Your creditors would be more than glad to have a talk with you. As much as possible, be upfront with them of your situation. Then maybe you'll have more manageable terms of payment.

 

10. Determine cause of indebtedness

 

Why did you get into debt in the first place? Assess what has happened to you in the last year. Maybe you lost your job that contributed to your mounting debt problem. Or you had a large medical expense. Maybe an unexpected legal expense. Finding out the root cause may help you cope more with the problem. However, if the cause of your indebtedness is rooted in your unrestrained spending habits, lack of budgeting skills, irresponsible use of credit cards, and at the extreme, addiction to gambling and other vices, then you'd better stop what you are doing right now and reflect on the direction you are headed into.

 

By following these tips, you may not need to consolidate your debt at all as there are some disadvantages to consolidation that the companies offering this service may not be upfront about. Discipline, perseverance and diligence will prove helpful in getting yourself out of debt. No one can do it for you so you need the motivation within yourself to haul yourself out of the debt hole you have placed yourself into.

------------------------------------------------------------------------------------------------------