Not all debts are bad debts. You need a reliable car to get you to work and other places. This is good debt. You need a roof over your head, and a place to call your own: a mortgage is a good debt. You need to go to school to get a good and satisfying (hopefully) career or job: Student loan is good debt.

But even good debt can turn into bad. If you have to stretch your budget to purchase that sleek sports car just because you want it, that is bad debt. If you purchase a big nice home that you can hardly afford, that is bad debt. Buying homes like that is part of what caused the mortgage crisis which in turn caused a world recession; but that is another story.

But what truly is bad debt is credit card debt. However, even this depends on how you use it. There is nothing wrong in having a credit card, or several of them. What is wrong is your attitude toward credit cards and how you use them. More on Eliminating Credit Card Debt: The Snowball Effect that Can Eliminate Your Debts, Fast

There are those that understand the problems one can have to deal with due to being locked up with a large amount of debt. That is why most people would prefer to stay away from racking up a lot of debt. Unfortunately, some people take this process a few steps too far.

Often, people equate debt with credit. This inaccurate. You see, you can have credit without necessarily being in debt. Also, someone without credit can also be in debt, as many who use payday loan companies will tell. Just by the way, we are not against payday loan companies as they can be a savior in situations of dire need. More on Why Being Debt Free is Not Always a Good Idea

You know how you accumulated the debt and now you’re looking for debt solutions. Whether it’s lost of a job, divorce or just poor financial skills, you’re in too deep and you need a resolution fast. Debt solutions should be practical and include an understanding of how you arrived in this financial mess so you don’t repeat mistakes.

You first take on debt solutions will include preparing a list of your financial responsibilities. Start your list with your major monthly bills that must be paid, like mortgages, food, car and credit card payments, utilities, insurance, etc. Next, think of any expenses that can be cancelled or at the very least reduced to an acceptable amount.

• Review your cable bill. Many times we have so many channels and most we don’t even watch. How many premium channels do you have? Now is the time to smarten up and take a hard look at what you need versus what you want. Call your cable company and negotiate your bill to a lower monthly amount. You could cancel your premium channels until you decrease your debt ratio.
• Telephone bill. Call your local telephone provider and negotiate your bill. You can cancel the extras on your phone.
• Cell phone bill. Again, call your provider and negotiate your bill. Ask for any specials and decrease your minutes to the bare minimum.
• Utilities. Turn off those appliances, televisions, computers and other phantom electric items that devour electricity that you’re paying for. See, even though you are not using the toaster, microwave, television, and computer and so on, they are still plugged up, thereby utilizing electric currents that you still pay for. You want to see a drop in your electric bill, unplug what you’re not using. Turn off the computer at night and during the day while you’re at work. You we see a big difference at the end of the month.

These cut-back are some debt solutions to help you pay down your debt. Trimming back doesn’t mean forever. It’s only for the mean time while you catch up on your financial responsibilities.

These are the basic debt solutions to start with. You must also understand how you got into your situation and how not to return.