How would you like to save a ton of money by doing your own debt consolidation? Most people run out to hire a debt consolidation company and pay big money for something you can do yourself and I will show you how.

If you are over your head in unsecured debt the first thing to do is to take a deep breath. You are going to see your way out of this. Before you run out and file bankruptcy, get a hold of all your unsecured debt, example: personal loans, credit cards, store cards and medical bills.

Find out what the minimum payment is on all of the accounts. If you are paying $120 a month for a credit card bill and the minimum is $20.00 per month, then that is what you are going to pay. I know you seen the commercials on television about how paying the minimum will take you 39 years to pay off a $9,000 debt.

Keep one thing in mind, they are trying to sell you something. This method is design to help you get out of debt without filing Chapter 13 or wasting your time and money with debt consolidation companies. Your creditors would rather work with you.

Try to reduce your unsecured debt down to the minimum, this will create an instant cash flow to help you save. If you cannot afford to pay the minimum, here is what you do.

Write a letter to all of your unsecured creditors and explain that unforeseen circumstances caused you to fall delinquent on your loan. Get your pay statements and circle your net pay. Send a list to your creditors showing how you plan on repaying this debt until your situation improves. Explain that in order for this plan to work, all must agree.

You will send each a letter certified with a copy of your pay statement and a workable plan. Your pay statement shows that you indeed cannot afford to pay the going payments.

Next you will reduce some of your household expenses until you get back on track. You know what I mean: satellite TV, all those addition to your phone line, eating out, too many movie rentals ; not increasing auto deductible, carrying all that insurance you don’t need and not tracking your spending.

Once you have the approval of your creditors that will accept your plan, start paying the smallest bill first. Pay two times the minimum, do this until it’s paid off. As soon as you complete this task, start paying the next highest using this minimum plus the same money you were using paying the first bill.

You will continue this cycle until you are out of debt. This will prevent your creditors from taking you to court and getting a judgment against you. It will keep those collection company at bay while you are buying time.

While you are repaying your debt, take part of this cash flow and establish a emergency fund. At a minimum try saving three months of your mortgage and car payment. This is obvious reason. Now you have a target on what to save.

Now to accelerate getting out of debt, you need to start your own business. It doesn’t matter what, just as long as you can start right now for little or no cost. And yes, you can make a lot of money on the internet for little and no cost.

This will truly turn your life around. While you have your creditors at your feet for now, start changing your habits and live the life you want and get out of debt.