So you have just discovered you are in a financial hole.
Your expenses exceed your income, and you need to do something.
Then someone suggests one of those companies that advertise quick fix, the fairy godmother of debt relief.
Forget it.
Stay away from those slick TV and radio ads.
These companies for the most part work for someone else not you.
Before you consider the debt consolidation company that I am going to send you to, consider these moves that will help you manage your debt problem.
1.
Budget.
Not just for next few days or weeks, for the next 12 months.
It is an eye opener.
You will be able to cut recurring "electable" expenses like those weekly restaurant outings.
2.
Talk to a friend who is savvy in financials.
Let him or her take a look at and in fact help you prepare your budget-the one for next twelve months.
Work to balance your budget.
Many times it just means a major lifestyle change, and some sacrifice.
3.
Find all available credit sources that are till open to you-home equity, relatives who will offer a tide-over loan, loans against your 401K etc.
4.
Use all available cash to reduce legitimate debt.
5.
Stick to your budget.
6.
Use the budget as the pilot to see how you fare, say for three months.
Is it reasonable? Can you manage it? Is it making a dent in your debt, or increasing your savings? 7.
Get your spouse involved in the effort.
No point in one part of the house saving, the other splurging.
8.
Stay away from counselers who charge money.
Your local chamber of commerce should be able to suggest someone who will counsel you just for reimbursement of some reasonable expenses, rather than charge you an hourly fee.
These counselers may help, but the cost is prohibitive.
Next best thing, get someone who will commit to preparing your plan for a low flat fee.
NOW, go to the only debt consolidation service that is worth anything, the National Foundation of Credit Couseling, (NFCC).
They have neat website with all sorts of calculators.
And some wonderful advice for first time individuals who are facing debt problems.
Good luck.