4. Debt Management Plans – Not everyone will qualify for a personal loan, and not everyone owns a house, or has someone in their personal life from whom they can borrow money for debt consolidation. For people in this situation there is another option available - a debt management plan through a credit counseling agency. Even if you have all of previously mentioned options available to you it may be more advisable to seek out a debt management plan. Debt consolidation through a debt management plan involves having a credit counselor negotiate with your creditors for payments you can afford. You end up making one monthly payment to credit counseling agency which then sends money to your various creditors.

Regardless of which type of debt consolidation plan you choose, be sure to check out potential lenders or your credit counseling agencies thoroughly. It is also strongly advised that you destroy paid off credit cards and formally close those accounts to avoid temptation to charge them up again. When done carefully and with consideration, debt consolidation will ease your financial worries.

* Repay High Interest Loans Some debt that is incurred has a higher interest rate than others depending on type of loan and time at which money was borrowed. Many times car loans and student loans have highest interest rates, while other debts like medical bills may have little or no interest accumulating. Although it might seem like a good idea to pay off bills that have a lower total balance to eliminate that payment, this is not always best option. In long run it is more beneficial to pay off debts that have highest interest rates first.

* Create an Emergency Money Account Try and work out a plan so that your family will have a little extra money in case of emergencies. Even putting a minimal amount of money back from each paycheck makes a lot of difference. The key is to be consistent, decide on an amount a stick with it. Another option is to save unexpected income, such as gifts or tax returns, for emergencies. It is estimated that one should save at least 15% of their annual earnings in a savings plan; this amount will vary according to your particular situation.