It’s easy to get oneself into mounting credit card debt.

Popular to contrary belief, people who have excessive credit card debts are not all undisciplined shopoholics. Credit card debts can multiply rapidly after a job loss, death in the family, injury, medical diagnosis, etc.

If you are a homeowner, you can easily refinance your home loan to take cash out of your home to pay off your debts. Even homeowners with low credit scores often have no problems clearing their debt burden. So what happens, if you are not a homeowner and have no assets that you can tap into for cash?

The answer lies in finding a reliable debt management program to assist you in aggregating your debts into one monthly payment. Before entering into an agreement with a debt management company, it is important to examine your financial habits and to understand the following:

1. Debt consolidation is a great way to eliminate debts but it is only successful, if you change the habits that landed you in debt in the first place. Don’t sign up for every credit card offer that you receive in the mail. Don’t max out your credit cards.

2. Ensure that you thoroughly understand the terms of any contract that you sign with a debt management or credit counseling organization. Don’t turn a blind eye and leave 100% of your finances in your debt management’s organization’s hands. It is your responsibility to ensure that bills are being paid on time and progress is being made in clearing your debts.

3. Monitor your credit report to ensure that your progress with your debt management/credit counseling service is accurately reflected in your credit file. You can obtain a free credit report from Transunion, Equifax and/or Experian through the federal government.