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If you truly want to kick the credit habit you need to get and review all of your credit reports to see exactly where you stand. You can get them free once a year either from the three credit reporting bureaus – Experian, Equifax and TransUnion – or on the site www.annualcreditreport.com. Once you get your reports you need to review them carefully to make sure they don't contain any errors that could be damaging your credit. This can also help you understand why you're having a problem with debt.
Don't try to borrow your way out of debt
You can get your debts under control and ultimately paid off. The trick is to not borrow any more money because as the old proverb goes, you can't borrow your way out of debt.
While you could be tempted to take out a debt consolidation loan and get all of those other creditors out of your life, it’s not a real solution. All you're really doing is stretching out that debt over a longer period of time. For example, if you were to get a secured loan such as a homeowner equity line of credit or home equity loan, you'd probably be paying on it for anywhere from 10 to 30 years. You might be able to pay off an unsecured loan quicker than this but you'd likely end up with a higher monthly payment than the sum of the payments you’re currently making.
Another not so good option for getting your credit card debts under control would be to transfer all your credit card balances to a 0% interest balance transfer card. This could work but only if you are able to pay off your balance before the end of the introductory period. If not, you would still be in debt and probably at a very high interest rate.
Two healthier options
Two other ways to get debt under control are debt settlement and to snowball your debts. Both of these represent better options because neither requires you to borrow more money.
If you're not familiar with debt settlement this is where you hire a company such as National Debt Relief to settle your debts for you and for much less than you actually owe. When you owe less you should be able to get out of debt much quicker and with a lower monthly payment. Snowballing your debts means ordering them from the one with the lowest balance down to the one with the highest. You focus all of your energy on paying off the debt with the lowest balance while continuing to make the minimum payments on your other debts. Once you get that first debt paid off you would have more money available to pay off the one with the second lowest balance and should be able to do it fairly quickly. You would then go to work on the debt with the third lowest balance and so on until you became debt-free.
If you’d like more information on using the debt snowball to pay off debt, watch this video.