4. Pay More Than You Owe Once you fully understand monthly minimums you owe on each debt, add 5% or 10% to your total payment, if possible.

“The addition is not mandatory,” Peterson says, “but it will dramatically improve success of your debt-reduction program.”

5. Stay Course Continue to pay 5% to 10% more on each debt until all debts are completely paid off. Even if your minimum payment requirements decrease as your debt diminishes, keep making same payment, Peterson urges.

“And if one credit card is finally paid off, make same total payment each month,” he says. “Just apply extra funds to one of other debts.”

6. Do Math Before you dig in your heels and say, “I just can’t do this,” it’s worthwhile to see how Peterson’s advice plays out in real dollars.

“If you owe $2,000 on a credit card with a 21% interest rate, and you make only minimum payment each month, you will owe on this account for approximately 19 years—and pay a total of $6,725.64 in principal and interest,” he says. “The steps I’ve already discussed will help you pay off debt in a fraction of time. The emotional commitment to make this plan work may not be all that easy, but using this program—even without additional 5% or 10%—will allow you to pay off debt in about 8.5 years, and you will save approximately $2,387 in interest.”

7. Turn Tables—and Start Earning Money If you pay off your $2,000 debt in 8.5 years (versus 19 years of minimum payments), you will have 10.5 years to place that monthly minimum payment in an interest-bearing bank account, retirement account or other investment.

“Interest is a magical tool,” Peterson says. “Creditors use it to their advantage all time. It can also work in your favor if properly implemented into right program. If steps mentioned above are taken, it won't be long before interest is working for you, instead of against you.”

------ Australian Debt Reduction offers all Australian consumers free debt consultations to assist them in getting back on top of their debt. They explain debt consolidation in simple terms and if you have over $4,000 in debt there are methods available to Australian public you may not have heard of to help limit amount of interest paid and rapidly reduce your debt. Visit Australian Debt Reduction at http://www.australian-debt-reduction.com.au or contact them directly on 1300 306 272

In summation, debtor cannot maintain a minimal standard of living and his dependents are left with debt, some additional circumstances in regard to standard of living would extend over life of repayment of loan, and debtor has tried to best of their ability to pay off loan according to plan.

The ideal debtor who will successfully discharge student loans are low-income debtors. The debtor has burden of proving their hardships. Any reason that makes this loan impossible for debtor should be made known to your attorney. For example, unemployable debtors, underprivileged debtors, a total lack of available jobs suited for debtor's skills, certain disabilities, etc. If any of these situations exist, your attorney will strive to prove any extenuating circumstances to court to get these student loans discharged.

Read more about bankruptcy at www.bankruptcyhome.com