As the amount of money you owe increases it is hard to image what it must be like being debt free; options do exist to help but certain steps need to taken before you can clear your debts. It is important to recognize you have problem and decide to do something about it and seek a debt relief solution. To avoid the situation worsening it is important to manage your money carefully and eliminate debt as early as you can.

Do not let panic over the situation rule your actions as you will probably end up in a worse predicament. The order of the day is to continue paying your debts of regularly unless you want your credit rating to plummet.

The easiest way to approach this is to calculate everything you have to pay out regularly both necessities and those inconsequential items that mount up each month. Cut the credit card purchases by introducing a habit of paying in cash as this will restrict your expenditure to the amount of cash you are carrying.

One sure way to help with your debt relief is to save all spare cash and place it in a fund to pay off smaller amounts that are owed but drain resources. By reducing the amount of entertainment you have on a regular basis will allow even more money to go into your fund and your debts will disappear faster.

There are times when debts are mounting and there is equity in your home it may seem like a good idea to refinance your mortgage and pay off your debts but this just means they will last much longer. You may consider this your only option but if it is just to ensure you have extra cash in your pocket each month, which is ok, just think about whether you really need too.

Some people draw out cash on their cards to pay for the monthly repayments thereby increasing their cash flow situation and aid their debt relief but this can only be done for short periods. If your debt is so high that you have to file for bankruptcy because a re-mortgage option hasn't worked then you should consult a bankruptcy attorney for the best advice.

Some people are able to bypass bankruptcy with the money in their individual retirement accounts (IRA) but such an act can seriously affect your financial future. Unfortunately once you withdraw from your IRA, you will lose your future tax-deferred returns so do decide where things are going wrong and then consult with your counselor over your debt relief situation before you go any further.