My Way Out of Dept.
There are simple, common sense steps to get out of debt. Unfortunately, like losing weight, they are not necessarily easy or painless. As an option, I apply to a morgage calculator tools to refinance my home or to look at a mortgage option, I Stop Borrowing Money. The first step escaping debt is to stop borrowing. Put it on the table: the more you borrow, the more you will owe. I couldn't borrow my way out of debt, but I must instead pay off my existing debts while not borrowing additional.
I’m a typical consumer, I engage in a lot of borrowing by making purchases with credit cards. I should try to break this credit habit. Most credit card companies and store cards will reduce your credit limit if you ask them to do so. The credit card company may try to talk you out of lowering your credit limit - because they make the most money when they let you borrow more than you can afford. But most importantly I cut off all my credit and store cards.
I budget my Income and Expenses. I map out my income, expenses, and payments on debts for a typical month, and create a balanced household budget. I budget some money for emergencies - if you are fortunate enough that no emergency occurs, you can either save the money for future emergencies or use it to pay down some of your debts. If you are paying credit card debts, budget to pay more than the minimum required monthly payment. Minimum payments are usually set in an amount such that, if you don't make an additional payment toward the credit card balance, you will never pay off the debt. Usually, your credit cards will carry the highest interest of any of your debt, and thus it will make sense to pay them off first, then it will make sense to carry the house payments with higher mortage rates.
If you cannot figure out how you can possibly pay your bills and still have enough money to survive at the end of the month, you may wish to consider using a credit counselor or a debt management service. You may also wish to consider the possibility of a debt consolidation loan. I had to stick to my budget - it is easy to create a budget which allows to get the debts under control, but impossible to resist the impulse purchases which break the bank each month. I helped myself to avoid temptation by making my purchases with cash. If you need help creating a workable budget or sticking to the budget, as previously suggested, you may wish to work with a debt management service. This is the only way. Any mpthinking about a mortgage must be carefully estimated at a mortgage calculator and then a desigion to be taken.