The following are common signs that you may have a debt problem.

1. You are taking out cash advances to pay for your other credit card bills - This is the fastest way to get in over your head. Not only are you taking out more debt to pay off other debts ("Robbing Peter to Pay Paul"), but you are doing so at higher interest and with fees tacked on. All this just to stay current! Although not advisable if you can avoid it, under these circumstances you may be better off letting the account go delinquent. Cash advances are typically taken out at an interest rate of more than 20%, and the credit card companies grab a percentage of the amount you take out. Even worse, when it gets to the point where filing bankruptcy is an inevitability, you may not be able to eliminate the credit cards that you took out large, recent cash advances on.

2. You are bouncing checks - Most financial experts advise people to save at least 10 percent of their monthly income. This is a major warning sign that you are devoting too much of your money to paying debt.

Bill Consolidation Frequently Asked Questions

I am in debt. My unsecured personal loans are all past due and the late fees are racking up. I have very little money but would prefer getting out of debt without bankruptcy. What do you suggest I do?

Given your situation it sounds like debt settlement could be a great option for you. Debt settlement, also known as debt negotiation or debt reduction, involves working with creditors to reduce the overall amount you owe on your credit cards. Because you're not just reducing your interest rate, you can actually see a dramatic decrease in your monthly payment and pay off your debt in much less time. Settlement programs are also only appropriate for overextended consumers, and since you have very little money it sounds like it could be a good fit.

I have bad credit and need a loan. What do you advise?

First, I would evaluate whether this is your best debt relief option to begin with. The combination of bad credit and a loan usually means you'll be stuck paying high interest. Given this situation, you should review why you so desperately want the loan. Is it to consolidate your credit cards? If so, you may be better off getting debt help instead. The one downside of some debt management services is your credit can be impacted negatively, particularly in the short-term. However, if your credit is already suffering, what do you really have to lose? Moreover, you will save a ton on otherwise high interest charges (through credit counseling) or the overall balance on your debt through debt negotiation.

My debt situation is not dire, but I hate the fact that so much of my money is going to interest charges each month. What solution do you recommend?

You sound like an ideal candidate for a credit card debt counseling program. By enrolling with this type of service, they can consolidate your payments and reduce your interest rates to the 8 to 11 percent range, helping you become debt free much faster. The average program lasts for four to five years and includes complimentary budgeting help.

I want to start paying off my credit card accounts. Where can I find a company that can help me?

Right here! All you have to do is fill out your contact information and PayingPaul.Com can refer you to a leading debt consolidation service for a free consultation. Who knew getting out of debt was so easy?