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Step 1
Consult with a consumer counseling service. It's their job to help you get out of debt and find a plan that works best for you and your family.
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Step 2
Transfer all your credit card balances onto another card with a lower rate. If you have multiple credit card payments, this will reduce the number of payments and reduce the amount you pay in interest every month. But this only works if you're able to pay the balance off while you still have the low introductory rate.
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Step 3
Consider a home equity loan. These are fairly easy for you to obtain and they can offer tax deductions at the end of the year. One negative to this option is that your house is the collateral and some homeowners simply aren't willing to take that chance. And your lender may stretch out the home equity loan so it's cheaper every month, however you'll pay much more over the long haul.
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Step 4
Borrow against your future. Employers and investment companies may allow loans from your 401(k) or other retirement plan. Read the fine print about potential tax penalties for accessing your retirement funds before you retire. You may also be able to borrow against the value of your whole life insurance. If you don't pay it back, that amount is deducted from the benefits that will be paid to your beneficiaries.
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Step 5
Ask family and friends for help. This can cause a sticky situation in some cases, but it might be worth it to help you better manage your debt. The key to calling on friends and family is that you need to be gracious, get everything in writing and repay the loan in a timely manner.
