Debt Consolidation to the rescue… maybe

Pay Down Your Debt Yourself or With a Debt Consolidation Loan  

If you find yourself in debt and are ready to make the commitment to getting out of debt, there are three general ways to do it. You can do-it-yourself, you can get a debt consolidation loan or you can file for bankruptcy. The latter method is always a last resort and should always be done with the help of an attorney.
If you decide to attempt to pay down the debts yourself, you need to choose between paying them down yourself or applying for a debt consolidation loan. You can choose between which method will be lower in cost, but you need to consider which method you are most comfortable with.  Paying down your debts yourself takes more discipline.
If you decide to start paying down your debts, the best method is to focus on one debt at a time.  Write down all of your loan and credit card balances as well as any other debt you have.  Write down each minimum monthly payment that is required for the debt. You then must decide which debt you want to focus on first.  The idea is to make minimum monthly payments on each account except one. One debt you will double up your payment.  In fact, pay as much as possible each month. When this debt is paid, take the entire monthly amount that was going to this debt and use it to pay a second debt along with the minimum payment you were already making. This method means you are eliminating your debts one creditor at a time.
Another good way to pay your debt is by getting a consolidation debt loan. This is a loan that will pay off all of your debts, and allow you to make one monthly payment to one creditor. This is an attractive solution because there is less to think about each month. This type of loan is closed end. This means after a certain amount of payments are made, the loan is paid off. This is much different from a credit card debt that is paid every month with no end in sight. In most cases a consolidation debt loan can be paid off early if you have extra money.

You must qualify for bankruptcy in order to have your debts discharged, so you may not even be in a position to do this. Once you go through a bankruptcy your credit will be terrible, and you will carry this mark on your credit report for at least seven years. If you are able to pay down your debts yourself, you will be able to save your credit rating, and you will feel much better having accomplished this important financial goal.