How to Tell if Debt Consolidation is Right for You

Many times, it seems the only way out of credit card debt is to consolidate by applying for a loan or seeking debt consolidation companies. How to tell if debt consolidation is right for you requires a great deal of thought as to whether there is no other way to pay off your current debt.
With the current economic downturn, it may not be a good idea to consolidate your debt by taking out a second mortgage or a loan. On the other hand, you may wish to seek a reputable debt management organization with certified counselors who can help you to pay your debts using their services.
However, in recent years there have been a slew of credit counseling organizations who have duped the public by taking their money and not paying the credit companies as outlined in the contract. So what’s the answer?
Given the two options proposed, does it seem as if either one would solve your debt problem? Or would it just add more stress to your life? If you have decided the latter is true, there are ways in which you can pay down your debt without having to resort to debt consolidation. Here are ten ways in which you can achieve your goal:
1. First and foremost, you have to resolve in your own mind that you have a problem and that you can do something about it. 2. If the debt is mainly credit card debt, call each company and ask for them to lower your interest rate. If you have a good credit history with them, they will likely do it.
3. If you have more than one credit card, choose the one that you have used the longest and cut up the rest.
4. Begin by paying more than the minimum payment on the card with the highest interest rate.
5. It may be necessary to find a second job to help pay down the debt. Also consider a part-time work-at-home business.
6. Seek the help of family members who can loan you money to pay off the debt. The money you save in interest rates alone will help you to pay them back sooner rather than later.
7. Sell any unwanted items on eBay and use all the profits to help pay the debt.
8. Budget your way to a debt-free life. Plan not to buy any high-priced items for at least six months; instead, put the money towards the debt.
9. Do not buy anything with a credit card; use cash instead. This way you will not be tempted to buy something you can no longer afford.
10. Find a good credit card counselor who may be able to give you additional advice on how you can pay down your debts.