by A.W. Berry

Created on: January 10, 2008   Last Updated: January 06, 2011

We are all free to choose how much debt we take on, but at one point or another the debt one assumes may become overwhelming or seem unmanageable whether it be due to layoff, a rise in interest rates or unforeseen expenses. Regardless of how one gets into debt, and why the debt may be out of control, getting out of debt is possible at least in part if not entirely through the steps illustrated in this article.

• Request lower credit card interest rates

Many people assume credit card interest rates are non-negotiable. While this may be the impression credit card companies would like to convey, it is not the whole truth. Credit card companies will often consider verbal and/or written requests to lower Credit Card Interest  rates for the purpose of debt relief, competitive interest or client retention. Making use of this option one of many important steps to reducing and eventually eliminating debt.

• Consolidate loans into one Low Interest Loan

If an individual or household has accumulated a number of different loans and debt obligation over the years, the total interest being paid on these loans may be able to be reduced through a loan consolidation. Loan consolidations can include car loans, home loans, credit card loans, medical debt and other contractual forms of debt. Since the total debt on these loans can get quite high, even 1 or 2 percentage points can lead to hundreds if not thousands of dollars of savings every year. Those savings can be then be reapplied to pay off the remainder of the debt. Methods of consolidating can be achieved through refinancing mortgages, obtaining second mortgages or renegotiating loans that fall under specific categories such as multiple car loans.

• Refinance home mortgages

Home mortgages may include the option to refinance within the mortgage contract terms. If this can be done without penalty the choice to refinance may be prudent. Not only can this amount to lower monthly payments and less total interest paid over the life of the loan, a mortgage refinance can also be used to consolidate other loans into one mortgage loan. It is important to note that when a home is refinanced, the amortization can reset meaning the interest payments will begin as though it is a new loan. While this may not affect the size of the monthly payments it can reduce the total amount of monthly savings in comparison to existing mortgages with higher interest rates and monthly payments.

• Budget

A good budget can

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