by Tamara Brown

Created on: March 27, 2009

Debt payments are a way of life for many people. When they get out of hand, they can make you feel like you are on the sinking Titanic with no hope of rescue. Even if your debt payments aren't that bad, they can still cause that sinking feeling in the pit of your stomach whenever you have to pay your bills. Either way, knowing the dos and don'ts of debt payments can help you to reduce or eliminate your debt so that you can one day sail into the sunset rather than be lost at sea.

The Dos

Do stop the leak. Trying to bail yourself out of debt, won't get you very far if you still have a leak. Plug the hole in your budget that is letting you spend more than you earn. This may include finding ways to become more frugal in your everyday spending, getting a second job to increase your income, or a little of both.

Do try to make a deal. Sometimes, debt collectors will take a reduced amount if you are willing to pay in one lump sum payment. If they agree to a deal, get it in writing; and never give them direct access to your bank account. Pay with a certified check so that you have a record of your payment.

Do move your credit to the lowest interest rate card that you can find. This can save you a lot of money in interest. However, read the fine print very carefully. Make sure you know if the rate is only a temporary one and how much it will eventually go up to. If you do move your debt to a credit card with a lower interest rate, cut up the first one so you aren't tempted to use iit again.

Do start a debt snowball. You do this by choosing one of your bills to focus on paying off first. You can choose the one with the highest interest rate or the one that is the smallest amount. Pay the minimum on all other accounts and throw everything at the chosen bill. This includes any extra money you can make by working extra hours or taking a second job as well as the money you save by cutting back your expenses. When you get this bill paid off, choose another bill to focus on and put all the money that you were paying on the first bill onto the second bill. Continue this process until all your bills are paid off.

Do have a goal. Decide on how much you would like to pay off in a certain number of months. Having a goal will help you stay on your budget.

The Don'ts

Don't take out a home equity loan to pay off your debt. If you are one of the lucky ones in America to still have some equity in your home, do not use it to pay off your debt. Most people who use their home equity to clear out

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