Here’s a silly question — do you enjoy being in debt? Well that answer should be obvious: of course not. However, getting out of debt can be a long, drawn out process. It may have taken you just a 
few months to a year to get into debt, but the solution to your debt problems can take many years to resolve.
Fortunately, you have some options to help you get out of debt, four of which we’ll discuss here. One or more solutions could provide the help you seek, so take care to understand what each choice means:
Home Refinancing. Interest rates are near historic low levels making the refinancing of your mortgage an attractive option, perhaps netting you hundreds of dollars per month via lowered mortgage payments. You can take the monies saved and use those funds to pay off your other debt.
Consumer Counseling. Consumer credit counseling companies want your business. This might be an attractive option for you, but you’ll need to shop around to find the best plan out there. Some credit counseling companies charge outlandish fees, doing work for you that you can do for yourself. As an alternative, some government entities and non-profit organizations offer credit counseling too. A middle ground is to find someone who can provide assistance to you, but at a fixed rate.
Loan Or Debt Consolidation. Those high interest credit cards can sap your wallet, therefore replacing them with one, low interest rate credit card is one way to consolidate debt. If eligible, you may also want to visit your local bank or credit union to see if you qualify for a debt consolidation loan. Be careful: some banks will charge you an application fee, but your credit card issuer will usually not levy this fee.
Cash Out Your Equity. An alternative to home refinancing, you may have enough equity in your home to cash out and pay off all or some of your debt. Importantly, though credit card debt is not tax deductible, a home equity loan is. In most cases, you can reduce your debt as well as reduce your tax obligation by cashing out. Check with your financial adviser to confirm the best option for you.
No Quick Solutions
Reducing your debt won’t happen quickly and involves a lot of work on your part. Once you begin to take control of your finances, you’ll soon be able to measure progress and be one step closer to overcoming your money problems.
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