If you find yourself with mounting debt, there are several steps you can take to reduce your current debt. Each of these methods have been used by countless individuals to reduce or completely eliminate their current debt load.

Home Equity Loan:

Taking out a home equity loan to pay off your current high interest credit card debt makes a lot of sense. Not only do you replace a high interest rate payment with a lower interest rate payment, but the interest on the home equity loan is most likely tax deductible. When you have paid off your debt make sure to cancel your credit cards so that you are not tempted to use them again creating two payments.

Company Retirement Funds:

Taking money out of your company retirement fund to pay off your debt is a double edged sword. While you can eliminate your high interest debt, you will most likely pay a tax penalty on the withdrawal and you are taking away money that could be growing for your retirement. This should only be used as a last resort.

Family and Friends

This one is a bit tough. If you take money from a family member or a friend, make sure to put into writing the terms of how you will repay the loan. That way everyone is clear and there won’t be any hard feelings.

0% Credit Card Offers

If you get an offer in the mail for a 0% Rate Transfer take the amount you can afford to pay each month and multiply that by the number of months on the free offer and then transfer that amount over to the new card. For example, if you can afford to pay off $100 per month and the offer is good for 12 months, transfer $1,200 over to the new card.

Renegotiate With Your Current Creditors

Given a choice between foreclosing on your home and renegotiating your terms, almost all creditors would rather renegotiate your terms. Credit card companies feel the same way. Given a choice between you defaulting on the money you owe them or renegotiating your terms, they would rather renegotiate your terms. Use this information to your advantage.

The truth is high interest rate debt can ruin you financially if you don’t take bold and quick action. The steps detailed in this article can have you back on the road to financial heath quickly.

Frank V is a noted expert in eliminating debt having eliminated over $100,000 of personal debt and interest charges. If you are looking for even more information on debt elimination visit http://DebtBeGoneToday.com for thousands of articles that will show you how to consolidate or eliminate your debt.

[tags]debt reduction, debt consolidation, debt, credit card debt, credit card[/tags]