If you find yourself deep in debt, there are various solutions available to help you out; however, you need to carefully weigh all options before you settle for any one. Given below are some tips that you may find helpful.

Do it yourself

The best thing is to be able to manage your own finances independently. What you must do is create a plan and set a time limit to each debt. Once this is done, go ahead and work out a budget. If you think you require a larger income, why not take up a part time job; this would mean additional income at hand to clear all your dues. Make sure your pay cheque heads straight to your bank account and use the auto debit facility to pay off your bills.

Consolidation Guidance

You can also get some consolidation or loans for people with bad credit guidance, but it is important to choose the right company. Preferably, go in for a non-profit settlement company, who will help negotiate with your creditors, and you could even get a reduction of 50 - 70 per cent off on your dues. But be wise, make sure you read the contract properly and get things in writing, so that there are no hidden fees involved or miscellaneous expenses to be paid.

Credit Counselling

You can go to a credit counselling agency, and pay them one single payment monthly and they will do the needful, that is, pay your creditors for you.

Cash Out Refinance

Be careful before you decide on this option. It is the option of using your home as collateral to get a loan with low interest rates. But if you don’t pay up, you stand to having your home repossessed.

Given above are but a few tips to help you out of your debt situation. However, it is imperative that you analyse each option carefully and only go for one which you find most fitting according to your individual situation.