Steps to solve your monthly debt payment crisis



Too much debt is often cited as the number one problem by many struggling with their finances. Interestingly, it is usually not the amount of debt but rather the amount of monthly payments that cause the most stress. Whether it was the holidays that put you into this debt crisis or just the circumstances you have faced lately there are ways to solve it.
What options do people have when it comes to solving their monthly debt payment crisis?
Consolidating the loans and credit cards into one loan, aggressively cutting spending to free up money or finding other income to pay the debt quicker are really the only three solutions.  All the other options that might be considered would have detrimental impacts on their credit situation.
What are the options for consolidating the debt if you are not a homeowner?
One popular option is using a personal consolidation loan to combine several debts into one loan. The benefits usually include a lower overall monthly payment with a shorter payoff time.  The rate might also be lower than credit cards which means less money spent on interest.  
What options do homeowners have for solving the debt payment burden?
One that has become quite popular is the cash out mortgage refinance. With rates so low for refinancing and the ability to have only one payment for all of your debt is very appealing to many people. It does come with a very important warning, you have to be disciplined to not run up your debts again. If that doesn’t work for your situation, the other option is using a traditional home equity loan.
How can people find the income to just pay extra if they can’t consolidate the debts?
For some, they will be getting a tax refund and using that to significantly reduce debt is a smart move. Besides getting a second job, the only other option is to go through all of your monthly expenses and find ways to reduce them to free up cash for extra payments. Once you find the cash, the best strategy is to focus on one debt at a time with your extra payments and when it is paid off, move to the next debt.
Are there any steps to avoid getting back into the same situation?
Start by evaluating all of your current spending and look for ways to lower any all expenses and also avoid buying anything with credit.  This is important because then you can begin building savings to make purchase. Breaking the cycle of debt isn’t easy and will require some basic budgeting, planning and discipline to be successful. The payoff of being debt free though will be worth the effort.

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