The current 'credit crunch' has hurt vast numbers of consumers. Due to the fact that banks are now hesitant to lend money to anyone who's FICO score is less than 750, the inability to obtain loans for a new home, business, college tuition or just about anything else has become a national problem. Moreover, banks have now also begun raising their interest rates at a time when the Federal Reserve is lowering them. Why such an inconsistency? Put bluntly, banks are afraid that the new debts will not be repaid. In fact, any consumer that's simply late in making a payment on an already existing debt may also see a sudden increase in his or her interest rate as well.

The best way to get out from under debt is…well, to begin paying it off. Do your best to double-up on some of those monthly payments. Many will immediately ask, "How on earth can I do that?" Listed below are a few suggestions that will help you "find" the extra money you need to pay down your debt:

• Call your creditors and ask to have your account's interest rate lowered. Generally, they'll work with you to ensure that the debt is paid off.
• Cut up all the credit cards you have except one. Keep it on hand, at home, for emergencies. Then, buy only with cash.
• Shred all incoming credit card offers, even those that offer 0% APR. Once the initial promotion period has ended, you'll be charged a significantly higher interest rate.
• Obtain your credit report and scores from all three agencies. Clear up any unusual items or problems.
• Compare banks and their fees. If necessary, switch to a different bank that offers free checking and ATM use or pays higher interest on checking- and savings accounts.
• If necessary (and only if necessary) consider refinancing your home. But, be extremely careful here. With the value of homes in decline, it may not be a good time to consider this avenue. Talk to a financial advisor to explore your options.
• Raise the deductibles on all your insurance policies. This can save you money in the long run.
• If you have both a home phone and cell phone, consider dropping the home phone. If not, call your service provider and eliminate any item that's not needed, such as call waiting, caller ID, etc.
• With healthcare costs rising, you may wish to explore the possibility of opening a Flexible Spending Account with your employer. If offered, this option will allow you to deduct a certain amount of money per paycheck and place into an account for medical expenses.
• Instead of purchasing expensive clothing at department stores, check out consignment- and thrift stores. If you must shop at other stores, do so only on sale days where prices are marked down substantially.
• Utilize your local library instead of spending money on books and DVDs. Moreover, there are trading sites online where you can swap books, CDs, and DVDs. Memberships are usually free and shipping is affordable via media mail rates.
• There are numerous websites that offer rebates, discounts and coupons for items other than food. They can be a great resource for saving money on everything from clothing to electronics.

Empower yourself with Debt-free living. Reduce your credit card debt by up to 50%.