It is heartbreaking to see so many homeowners drowning debt.  Similarly, young couples, often with small children, fall for the easy idea of “just sign here” to finance the little necessities and small luxuries of life, only to be caught later on with the credit cards maxed out, and a financial emergency they did not count on.  Sliding down that slippery slope to indebtedness is not that hard.  Take for example the young couple with the baby who is working hard to make ends meet.  He works at a restaurant and she helps out occasionally.  They need some formula for the baby, and the credit card is there.  Perhaps they would like to get away for a weekend, and once again the credit card comes to the rescue.  In the meantime her services at the restaurant are no longer required, and so now they might need to take out a payday loan to cover some of the credit card expenses.  The credit card is already maxed out, and now he loses his job.  All they are left with at this point are relentless creditors who want the couple to show them the money!

In one variation or another, this scenario plays itself out time and again.  Fortunately, if the brakes are applied early enough, you will be able to hoist yourself out of that maelstrom of debt.  Granted, it might be a slow and gradual progress, but you will be able to get out of it, if you have the discipline to stay out.  The latter is usually harder than you might imagine!  At this point you might be wondering what to do, and the answer is simple: don’t give yourself any more credit – consolidate and save!  How can you accomplish this?  Here are some tips and tricks that will help you on your road toward that goal:

• Know how much you owe.  You might be surprised to find out that many consumers are clueless when it comes to the actual state of their indebtedness.  Sure, they write copious checks every month, but because it is more like throwing steaks into a den of hungry wolves, they quickly write the checks and then toss the statement in the trash.  Instead of doing this, it will be a wise idea to keep your statements and keep track of how much you are paying every month.  Do this for a couple of month, and then take a look at the statements.  What are your outstanding balances?  How much is the monthly payment? What are your interest rates?
• Once you have a good grasp on your recurring monthly debts, you can think about consolidating them.  If you are a homeowner, you might be able to qualify for a home equity loan or line of credit.  If you do not wish to go that route, you can apply for a personal loan or line of credit.  The goal is to lower your monthly overall spending when it comes to paying off debts, while at the same time lowering your debts by getting a more advantageous interest rate.  For example, if you carry a credit card that charges you 23 percent, yet you qualify for a home equity or personal loan at eight percent, the rules of mathematics dictate that you will be saving a bundle by paying off the 23 percent creditor with a loan at eight percent!
• If you do not own a home and cannot get a personal loan, you may be able to qualify for another credit card with a low introductory rate or a special rate for balance transfers.  Consolidating your debt this way may require some finesse, but it is a distinct possibility.
• Of course, if your credit is already damaged by too many outstanding accounts, the odds are good that you will not be able to qualify for another card.  In this case you may want to take a look at a debt consolidation company. They will renegotiate your interest rates with your creditors and get them down to a managed sum.  Additionally they will try to get the bottom line minimum payment the creditor will accept and then let you make a lump sum payment to them, which the company will disburse to all your creditors.
• Yet all of the above options are only step one.  Step two is just as important: once you have chosen a way to consolidate your debts, do not give yourself any more credit!  Cut up your credit cards, close your department store accounts, resist the urge to “just sign here” for little luxuries.  Otherwise you will soon owe money for your consolidated debt as well as to your old creditors, and you will be worse off than before!