Debt Hitting rock bottom is never a warm and happy feeling. In fact, it’s a cause for alarm. If you don’t watch your expenses carefully, going broke is a possibility.

Take action before this happens. Here are some suggestions to help cut your monthly expenses to a more manageable amount:

1. Refinance your home loan

You may be eligible to refinance a mortgage. American Loans explains that refinancing is a common solution for homeowners who are looking for better rates for their mortgage. While you’re at it, check if you may also refinance your car loan. A lower monthly rate can help you get back into the right budget.

2. Consolidate your old loans

If you’re still paying student loans or any other unsecured loan, you may be able to find a good loan consolidation option. This means taking out a new loan to pay off other loans. At least you have only one loan to worry about. Make sure to get one that lowers your monthly payments and not make things worse, though.

3. Reduce your credit card rate

If you are a good paying customer, your credit card company may agree to lower your monthly rates. You may try transferring the balance to another card if the other company won’t agree to lower your monthly payments. Keep credit cards at home, so you are not tempted to use them for the time being.

4. Change your lifestyle

A lifestyle change is important if you want to get out of debt. Stick to paying cash for now and list all your expenses and remove the ones you don’t need. Sell whatever items you have at home that you don’t use. A good example would be your party clothes. Sell them so you have another reason to stay at home (instead of drinking with friends) and save money. Don’t buy new clothes or shoes unless you need them, and try carpooling to work with some officemates to save on fuel.

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It takes some dedication to stop yourself from spending more than you make. Imagine your future: would you rather have money in the bank or none at all? The choice should be easy.