A blissful afternoon of shopping with your credit card can come back to haunt you if you don't have the income to back it up. If you own multiple cards, then your problem may be compounded sooner than later. Your only resort may be through debt consolidation.

This actually a common practice where you take out one loan with a lower interest rate in order to pay back one, two or many other loans which have a similar or a higher interest rate. This also has the added benefit of having to look through so much paperwork in favor of only one bill. A simple illustration is a home mortgage. Normally, the loan would carry a very high interest rate. However, with the borrowing secured against a collateral (in this case the house), the creditor can risk offering a lower interest rate.

There are many good consolidation services offered through credit unions as well as on line. These companies will essential purchase all the loans that you have and pay for them. You pay them for this service at an interest rate that you agree on for a longer term. If you calculate what you spend for these services, you'll find that you spend a bit more over the years. However, you have to remember that the companies do you a great service by getting rid of all your paper work problems (and with that, all your headaches).

If you want other options, you can take out a home equity loan. The interest from this type of debt is actually much lower, and any interest you pay can be deducted from your income tax. Another option would be to refinance your car. This is another type of secured loan with your vehicle acting as the collateral.

Before you go out and start borrowing again, try to request for a lower rate. There are instances, especially with credit card companies, where a simple phone call can secure you a lower rate. It won't be a substantial amount, but it will be very helpful in the long run. You can also try to get an unsecured loan if you have good credit. The interest is higher (starting in the double digits), but it might be lower compared the obligations you have now.

Don't forget about what cause you to get into debt in the first place. If it was aggravated by a spur of the moment decision, or you indulged yourself in new appliances and gadgets, don't do it again. You'll only fully enjoy your assets if you've paid off your liabilities in the full, and there's no sense spending so recklessly again.

If all your obligations have been consolidated, and you manage to work up a monthly income again, strongly consider putting it in a savings account. The money you spend paying back your lenders should come from you first before it comes from others.

Don't forget about what caused you to get into debt in the first place. If it was aggravated by a spur of the moment decision, or you indulged yourself in new appliances and gadgets, don't do it again. You'll only fully enjoy your assets if you've paid off your liabilities in the full, and there's no sense spending so recklessly again. Bad debt consolidation is important and you should take it into consideration.