Is it possible? Can you crawl out from under the credit rock? The answer is a definite maybe. It depends upon your particular situation, of course. Many people have extricated themselves from horrible credit situations. There are several ways to go about getting yourself free from a crushing debt load and a poor credit picture. You must do several things:

1)If it is at all possible, you must change the circumstances that got you into this bad credit situation in the first place. If you are spending too much, you must change your spending patterns, and do it right now. Just because you friends go out to nice restaurants every Friday night doesn't mean you can too. The same holds true for weekend ski trips, nights at the casino, and just about anything else that is not absolutely necessary. There may be a time in the future you can resume frivolous spending, but that time is not now.

2)You must work out a plan to quickly eliminate as many of your credit accounts as possible. You may keep a credit card for emergencies, such as car or home repairs. Other credit accounts, such as credit cards and store charge cards, should be canceled and the accounts paid off as soon as humanly possible.

3)In order to complete a debt reduction plan, you must work up a budget. List your after tax income from all sources. Then list your expenses. It's a great idea to keep a record of all your spending for an entire month. This will show you where you can cut back on your spending. There may be areas where you are spending far more than you realized. The morning latte is a great example. Many people stop at the espresso stand on the way to work without realizing just how much the morning shot in the arm really costs every month. If you get a $2.50 tall latte and tip $.50, you're spending $3.00 every weekday. That's $15.00 a week and $720.00 a year! Eliminating just two or three of this type of expenses could pay off many peoples credit cards in a year or two. If you really need the caffe' in the morning, make it at home.

4)If your cash flow is such that you're spending more than you make every month, you must change the situation right now! If you can't do that with the simple type of spending modifications outlined above, you've got to do something more effective. It essential to make a change without further delay or you risk being caught in a credit death spiral that can lead to all sorts of dire consequences, such as bankruptcy or the loss of your home. One way to really improve your monthly cash flow is to get rid of your high interest credit cards. Many times these cards have interest rates of over 20%. A few late payments or over the limit charges can cause the creditors to up the interest rates substantially, even if your credit is basically good and the card had a favorable initial interest rate.

If this has happened to you, and you're burdened by a few of these high interest cards, you must get out from under them now. It can be advantageous to get a debt consolidation loan. You can really reduce your monthly cash flow and make it much easier to meet your financial obligations every month. Be warned, however, you should not take this step lightly. It is extremely important you take steps to ensure your current credit situation is prevented from occurring again. Make whatever spending adjustments you need to make to do this. If you do not, and cannot make your loan payments, you can lose your home. A consolidation loan is definitely the right thing for many people. It can get them back on their financial feet. You need to see if this is the right step for you.