Most debt relief experts will probably discourage you from getting a loan to pay off your debts. While it is a legitimate way to get out of debt, there is just too many pitfalls to make it a safe route towards financial freedom.

However, some people feel strongly about taking this option and if you are one of them, you need to know a couple of things first.

On the topmost list is you need a steady and stable income. This is one of the requirements before you get a loan. If you cannot provide proof of income, no lender will approve of your loan. And the requirements will not stop with just your income. There are more considerations for you to get a good deal on your loan.

When you opt for debt consolidation loans, the idea is to make your monthly payments lower than the current. One of the ways to lower the payment is to get a lower interest rate. To know which is lower, get the average interest rate of all your debts. Whatever is your current rate should be the target. Do not get a loan that has a bigger rate than what you have at the moment.

The best way to get a low interest on your loan is to have a good credit score or a collateral. Both will make you a low risk borrower. Lenders protect themselves from high risk borrowers by raising the interest rate. Make sure you get the best deal out of the loan so you have the lowest possible monthly payment on your debt.

Once your loan is approved, pay off your debts and create a payment plan. That plan will be your roadmap as you get out of debt. There is usually no debt expert involved in this program so you are on your own. That means you need to monitor your payments and make sure they get to the lender in time.

Try to allot as much amount on your disposable fund. Limit your expenses by removing those that you do not really need. You can also set up a supplementary income so your cash inflow is bigger.

Sometimes, we get bonuses or cash gifts that increases our disposable fund. You can put that in your debt payment - unless there is a prepayment penalty. This penalty means you need to strictly follow your monthly dues. If you insist on paying more in order to reduce your principal debt amount, you have to pay a certain amount of fees for that adjustment. If there is none, that will allow you to pay off your debt faster.

Probably the best practice that you can implement is to live within your means. At this point, your debt is not really reduced but you may feel more complacent because your credit cards all have zero balances in them. Fight the temptation to use them again - lest you will acquire more debt on top of what you still owe. This is the main reason why some financial experts advise against using debt consolidation loans to pay off credit obligations.

What makes debt consolidation loans dangerous is your inability to control your spending. You need to develop the right habits in order to keep yourself out of debt. More than paying off what you owe, you need to make sure that you will not end up in debt again.

When you enroll in any debt relief program, your intention is to succeed in getting out of your financial crisis. Because of that, you may want to look into the principles of successful people. We’ve generalized some of the usual tips of successful people and we came up with principles that you can implement while you are on your way to financial recovery.

First of all, successful people always have a purpose for everything. Given that, you need to identify your purpose in getting rid of your debt. Is it because you want to buy your own home in a few year? Is it because you are tired of living from paycheck to paycheck? Or do you want to get rid of your debt for your peace of mind? You have to identify this so you have something to motivate you. Successful people do not wait for things to happen to them. They have the initiative to act on the things that they want to happen - a goal that becomes the purpose for their actions.

This principle allows successful people to align all their actions towards their purpose. If it is not contributing to their goal, then they think twice before acting on it. For those in debt, this can be applied to your spending. If you want to buy something, ask yourself if that particular purchase can contribute to your personal well being or your efforts to have a better financial standing. If the answer is no, then opt not to buy that product.

Another thing that you can get from successful people is that they are not ashamed to ask for help. Although you may feel that you debt is your burden, you need to realize that there are people around you who can help out. If not monetary, they can provide you the moral support that will give you the strength to persevere despite the most tempting of times. Even the most successful person have a support group with whom they get strength from. It doesn’t have to be from one source. You can have one from your friends, a colleague from work and your partner. Choose people who have the same principles as you and will inspire you to achieve your debt relief goals.

You should also know that successful people had their share of failures too. Even the great inventors had to fail countless times before finally getting an invention to work. The same is true for you. It is not the failure but how you get up from that. Your debt is one failure that you should rise from. If you are in a debt settlement program and the creditor did not approve of your proposal, do not be discouraged. Use every failure as your fuel to succeed. Don’t be afraid to fail. It is part of life. Just learn from it and try not to let it destroy you.

All of these principles helped millionaires and billionaires get to where they are right now. While your goals may be small at the moment (getting out of debt), your drive for a successful debt relief should make you a good candidate to apply the principles mentioned above.

Getting rid of credit card debt is not as easy as it sounds. When you think about it, these cards can be quite a temptation to get over. How can you stop using something that allows you to purchase things and avail of services even if you cannot pay for it now?

Well that is exactly how you got into trouble in the first place. The essence of credit cards will really get us into the habit of acquiring debt. They allows us to live beyond our means by giving us the power to purchase things that we cannot afford in cash. That habit is the complete opposite of wise financial management.

So if you really want to get rid of debt, you need to do more than just pay them off. You need to get rid of the habits that got you in that situation. That involves breaking old habits and developing new ones.

You begin by making the decision to stop using your credit cards. Of course, that is only effective if you actually do it. If you want to use it for the reward points, then make sure you have the cash on hand to pay for the bill as it arrives. But ideally, you have to stop using it altogether. That does not mean you close the account. It will have a negative effect on your credit score. Just keep it in a safe place where you will have a hard time getting it.

If you still have it, check the contract that came with your credit card. See which account has the highest interest and make sure that it has the least balance. If not, you may want to check the contract if balance transfers are possible. Research on balance transfer fees and other procedures involved. Find out if it will benefit your debt or it will only make things worse.

Paying for more than the minimum is also a good idea. If you stick to the minimum payment requirement, you could end up in debt for a very long time. Paying more than the requirement will decrease your principal debt amount further and not just the interest rate. When the next bill comes in, the interest amount will be smaller because a bigger portion of the principal amount was paid off.

Of course, this advice is only applicable to those who can afford it. If your disposable income (the amount left of your income after removing the basic necessity expenses), is big enough to cover more than the minimum of your debts, then this is something that you can do.

In the event that you are unable to afford this, then you need to look for a debt relief program that will help negotiate for a lower debt amount. There are many options for debt relief but you need to know if it is the right one for you - based on your ability to make debt payments. It is important to choose the right option because failing to do so can lead you to more debt than when you started.

If you are regularly paying for the minimum of your credit card debt, did you ever notice that your balance does not seem to be going down? Even if you pay your statement on time, the difference from last month’s amount does not seem to be significant at all. When the next bill comes in, you realize that what you paid for the previous month was only a little over the finance charges and interest of your debt. Only a small amount of what you paid for actually went to the principal amount on your credit card balance.

It is a known fact that credit card debt is very easy to fall into but hard to get out of. The temptation to keep on using it until we’ve reached the maximum is very strong. Paying back what you owe, however, can be very tricky.

Most of credit card users think that paying for the minimum payment stated on the bill is enough to tide them over. Let us show you some figures to help you understand what we mean.

The minimum payment is mandated by the government to be 4% of the outstanding balance. What used to be 2% was increased because the authorities recognized the never ending payments that consumers were tricked into paying.

You see, when you have a $10,000 credit card debt on a 20% interest rate, your minimum payment will be $400 a month. If you stick with this payment, it will take you 14 years to pay off your debt! Not only that, your payments will include an interest that will amount to almost $7,000.

But if you add a mere $100 to your monthly payments to make it $500, you only have to pay for your debts for 25 months - that is only a month over 2 years! Not only that, the interest will only be $2,266. Imagine the savings by only adding $100. You can skip buying your lunch if you want to. The average American spends more than $30 a week dining out for lunch. If you make a little extra at night, you have something to pack in the morning. You can make a few savings here an there to get this extra $100 to put into your payments.

By making a few sacrifices everyday, you can shorten your credit card debt payment to 2 years instead of the 14 years. Not only that, you get to save more than $4,000 in the process. Thinking about these figures will surely motivate you to cut back on your expenses.

Of course, if you cannot afford even the minimum of your payments, you should opt for a debt relief option. There are options that will allow you to reduce your current balance so you only have to pay for a percentage of the original amount. This program is called debt settlement. Once you have completed that payment, the remaining debt will be forgiven. The trick here is getting the creditor to agree. As challenging as that may be, it is worth looking into. And it is much better than being stuck with minimum payments for sure.

Research more on your options for debt relief. Knowing your options will help you achieve financial freedom.