I am pregnant and want to quit work when my baby is born. BUT with so much debt; I need my income just to make the monthly payments. What can I do?

While it may be fun to spend money you don’t have, debt can quickly become a major burden. Hopefully, once you pay it off – you will keep that in mind whenever you want to dip into that credit again! Luckily, there are some things you can do now to help get you closer towards your goal of staying home with your baby.

You may be able to lower your payments by consolidating your debts with a second mortgage or a home equity loan. Basically, debt consolidation involves taking out a low-interest loan that will pay off all your current debts, leaving you with just the one loan to pay off. Be aware that these loans require you to offer your home as collateral, which means if you can't make the payments on time; your home could be forfeit. Also, the costs of consolidation loans can possibly include interest and “points,” with one point equal to one percent of the amount you borrow. However, consolidation loans may carry some tax advantages that are not available with other kinds of credit. If you’re thinking about hiring a credit counselor or financial planner to stabilize your financial situation, do some homework first. Find out what services a business provides and what it costs, and make absolutely sure to get everything in writing. When all else fails, personal bankruptcy is generally considered the debt management option of last resort. Be aware that the results are long lasting and far-reaching and not an ideal way to begin a family. A bankruptcy stays on your credit report for 10 years, and can make it difficult to obtain credit, buy a home, get life insurance, or sometimes get a job.