Car title loans can be one way to borrow your way out of debt. It’s not a method many people think of, but your vehicle may be a valuable asset to help you get out of financial trouble. Vehicle title loans are especially designed for people who struggle with credit card debt and repaying their loans and other debts. The approach works because the loan against the vehicle can be used to either pay off or pay down other debts. This, in effect, consolidates money owed. That can make managing debt a whole lot easier. As well, because debts are being paid off, credit ratings can go up. And that can be a terrific advantage in the future when you might want to borrow again. It costs more to borrow this way, that’s true. But if paying off loans, debts, and credit cards is beginning to overwhelm, this approach can simplify your debt repayment, and help you get your finances back in line. It might be a small price to pay to keep you out of bankruptcy.

The loans are also straightforward and easy to complete. Just go online, and fill out the form. Some lenders are even able to process your loan in as little as 24 hours. And, the loan can be direct deposited into your chequing account, for extra convenience.

If you own your vehicle, and it’s less than eight years old, chances are you’ll be eligible for a vehicle title loan. Most people are-about 99% of qualified applicants have their loans approved, for up to 40% of the wholesale value of their vehicle.

It’s a fast and private way to find those extra dollars that might make the difference between being solvent or bankrupt. And give you just enough breathing space to work out a financial plan that can help you regain your footing and get your finances back on track.

Even if you have had a long and tough financial past, you can recover from poor credit, bankruptcy, and general money mismanagement. There’s really no secret to it. It’s a matter of “wanting to stop” as “Bad” does, and do things differently.

So what do you do if your spending is way out of control, and you’re spinning headlong into the money ditch? Put on the brakes, just like Bad. Then, clean house, again just like Bad does, and get what’s sent you down that highway out of your financial house.

For financial mis-managers, that can mean a few different strategies. The best one for compulsive spenders might be to remove the ability to spend. So, eliminate all non-cash sources of money, like credit cards. You can even shut down your line of credit, if you ask your banker to close the line to general use, and only allow it to be paid down. Then, use only cash, and don’t even allow yourself to carry a debit card. Make it difficult to get at your money.

Now, budget every single cost, and only go to the bank to get the money you need to live. Besides groceries, most people really can live without access to cash. Even budget your gas use, and fill-up at regular intervals, using cash you’ve taken out specifically for that purchase. If you always go into the bank, and only take out the money you need for specific purchases, you’ll find you spend a lot less than when you were carrying credit and debit cards.

Taking away the ability to spend without thinking-using credit and debit cards-making your cash hard to get at, and living by a budget where you always pay cash are three top tactics to get your financial house in order. These changes can feel like a cold turkey approach to getting your finances straightened out, but just as “Bad” discovered, life is better when the debts are paid.

Although many Canadians, even most, might be in debt, the people we want to emulate are those who have no debt. What’s their secret? Well, odds are, they know a thing or two that we can learn and copy.

First, recognize there’s good debt and bad debt. If you’re a recent grad carrying $25,000 in student loans, you’ll be happy to hear that’s a good debt. It’s considered a good debt because the return on that whopper of an investment should far exceed the money you had to borrow to make it. On the other hand, if it’s a $10,000 debt on spring break trips to southern climes and lovely Margaritas, well, try and get your money’s worth for those wild weekends, and you’ll see what we’re talking about. That’s a bad debt.

Here’s another difference between good and bad debt. A good debt expands what you’re worth, by either making you personally more valuable (because you’ve got an education and know stuff, for example) or adding tangible goods to your portfolio that are valuable (like investments, a home, or business). You’ll know you’ve got it made with good debts when you go into the bank and are immediately ushered to the second floor where the suits hang out.

A big key is to balance your good debts and eliminate your bad ones. That means paying off your credit cards as much as possible, not buying what you cannot afford (like a 42-inch high definition, blu ray television), and being sure to keep up on payments on your good debt. So pay that mortgage every month, and don’t default on your student loans. But that doesn’t mean you have to keep paying those high interest rates on your student loan.

This is another way to manage your debt. For debts like student loans, which can sometimes have really high interest rates, see if you can negotiate it down or buy it out with a line of credit. That can save you significant dollars if you’re carrying a large debt.

Debt isn’t always a bad thing. Owning a home, or capitalizing on a good education, can have terrific returns. Just be sure you know the difference between a good debt and a bad one.

First, be careful how much you borrow. The two or three big-ticket items most people hope for include an education of some kind, a home, and a car. Generally, most of us are not going to buy those things without a loan of some kind. It certainly isn’t impossible to get an education by working full-time during the day and going to school part-time at night for 11 years, or buying only as much car as your bank account will allow-say, a 1984 Honda Civic. Most of us, though, aspire to faster degrees, and cars! But everyone has a limit. Know yours.

Tip one: Don’t start school until you know when you’re going. Too many people waste two years’ worth of loans before they know what they want to do-and that’s a lot more expensive than six months’ hitch hiking through Europe while you work out what your future career path.

Tip two: Don’t over buy on your first car. Do you really need an audio or BMW? Wouldn’t a pretty nice, nearly new Golf hatchback do?

Tip three: House buying is a complicated process, but the research still says that people buy on impulse. Before you start looking for a home, put together a checklist that includes a list of the features that might be important to you. For example, do you want to walk to your work place or downtown? Do you spend a lot of time in the backyard, and have a dog or kids that need a fence? Most important, go to the bank before you go house shopping, and see just how much home you can buy. Never reveal that number to an agent, if you’re using one. And don’t be afraid to look at houses being sold privately; it can save you thousands.

In every case, house buying, car purchases, and educational choices, have a budget on what you can realistically handle. Then you’ll never have a good debt go bad on you.

Building good credit and a strong credit history can reduce other costs. When your credit score is high, you can use it to bargain for better mortgage rates with your lending institution. And that alone can save you many thousands of dollars. You can do the same thing with your credit card lender. If you have great credit, call them up and ask for a lower rate-if they won’t give it to you, there are plenty of other credit vendors who will.

Good credit can also allow you to take advantage of long term no-interest loans that allow you to purchase appliances and other large household items without paying a cent-sometimes for up to 18 months. Good credit can get you 0% interest over 5 years on a car loan-a huge savings. So a good credit reputation can give you lots of leverage when it comes to making costly purchases, and potentially save you a fortune on home or car mortgages or big appliance buys.

So if you’re good at using credit to your advantage, you can save all kinds of money by being able to take advantage of sales, long term no-interest offers and leveraging your good credit for lower interest rates.

The trouble with credit starts when it is used as a permanent income-extender for daily living, like buying groceries or paying the utility bills, and forgetting about ever paying off the balance. That’s when you can bet your credit use is out of control. A quick control check can reveal your own dependency. Leave your credit cards-and all other plastic-at home for 24 hours. Can you do it? If you discover that you’re reaching for plastic several times a day, chances are you’ve developed a bit of a credit card habit.

Break the habit by learning to leave the cards at home. It can be tough at first-addictions are hard to set aside. Start slowly, and, as they say-one day at a time. But, as they also say-just do it. Gradually, you’ll become accustomed to not carrying money or cards with you-and you’ll learn to live within your real means, without debt.

Tally up your debt weight. Until you know how much you’re carrying, it’s pretty much impossible to know how much you have to lose. Don’t cheat-add up every penny you owe.

Have a partner on board. It’s a lot easier to tighten your belt when someone else is tightening right along with you. Whether it’s a life partner, spouse, friend, or your mom, having someone you’re accountable to, or someone who’s just cheering you on can only help, right?

Don’t hide anything from yourself or the people helping you out. It just won’t do any good to pretend your debt load is smaller than it really is. Is it six credit cards, three personal lines of credit, and two in-store accounts (not to mention your sister and best friend)? Get it all out there.

Plan a debt loss strategy. Whether you pay one debt off at a time, based on a high-interest first approach, or several debts a bit at a time, the key is to have a plan, and stick to it. Having regular money meetings with your partner in debt loss can help you to stick to the plan and meet your debt reduction goal.

Always save something. If you feel like your entire pay cheque is going to pay down debt (and it might be) start setting aside at least a small amount every cheque that goes to savings. Always save something, no matter how small or trivial it might seem.

Live by a budget. Set out the things that you have to pay each month, like your mortgage, car payments, and utility bills. Then pay them, every month, without exception. Never skip a payment. Pay less, if you must, and then contact the company and talk to them about it. Often, they’ll understand and even waive the interest charge or late fee.

Stop using your credit cards, lines of credit, or other false income-extenders. One of the problems with credit is that it makes you think you have more money than you do. And, as valuable as credit can be, until you understand how much you really make-without the help of plastic-it’s probably good to stay away from it.

Try these guidelines to your debt loss and see how much better you feel with debt weight off your shoulders.

But learning to say “no” can be the most important lesson to learn about using a credit card. Only by saying “no” will your balance ever get to zero. When was the last time you paid off your credit card? When was the last time you paid off your credit card, and then didn’t immediately charge it right up again? If you find that you just cannot say “no” long enough to get that credit card paid paid off, here are a few ‘no boosters’ that may help you give that 2-letter word a work out more often.

Keep your debt total where you can see it. Post it in big, bright red numbers in plain sight-on the fridge or as you go out the door (don’t forget to take it down when people visit). There’s nothing like a little red to help you say “no” to a new purchase. When you see what you owe, and how long it might take you to dig your way back out of debt, “no” can seem like a pretty easy alternative.

Remind yourself what a good lesson it is for your family. If you can say no to yourself, your children will see the self-discipline you practice, and discover that even adults have limits to what they can have in their lives. This can help teach your kids that someday they, too, will have to make choices-and some of them may be plain “no” decisions.

Take satisfaction in resisting impulse buys on credit, like lunch out, magazines, or an afternoon at the movies. Too often the buys that really add up are not the big ticket purchases. It’s the “$5 here, $10 there” small expenses that really go “ca-ching.” And that can be a real shocker when the credit bill comes in and you’re expecting to owe little or nothing, and instead you owe three or four figures.

Learning to say “no” is a good lesson for all of us. Try it for 30 days. Can you keep a zero balance on your credit card that long?

School systems across the country are also on the move. They’re looking to introduce classes in finance fundamentals to our children as young as grade four and possibly as early as 2011. What both these moves point out is the reality most of us live everyday-that nobody ever taught us how to manage our money, or how to invest it wisely or well.

Good money management does require a few changes in your thinking, almost certainly a few new habits, and some discipline. To develop good money management skills-like any new skill-you have to practice them until they become ingrained into your lifestyle, and monitor yourself to ensure that the old bad habits don’t creep back in to your life, and send you back down the money hole.

What are your bad habits?

Before you can change anything, you need to know where your money pits are. Try this 30-day challenge. Monitor all your purchases-every one of them!-and keep the receipts. Carry a small book around with you-something you can easily slip into your pocket or handbag, and enter every single thing you buy and where. That includes the soda pop you might buy while strolling through the mall, or the quickie meal you pick up on Friday night on your way home from the grocery store. Track all of it. At the end of the month, see where and how (credit, debit, cash) you make unneeded purchases. Add those up. Are you surprised at the total?

How can you replace bad habits?

Now that you’re aware of your bad habits, start changing them. If you use plastic too much, stop using your credit and debit cards. If cash burns a hole in your pocket, stop carrying it. If walking through the mall on Saturdays always means you spend money needlessly, try going somewhere else-like the park or the library. Only carry your cards or cash when you are making a specific purchase like groceries, or paying a bill. Learn to feel okay about not buying anything, and saying “no” to the kids.

What’s next?

If you’ve stopped those bad habits, you may well feel richer-because you are. But don’t let that newly found money go to waste. Take the money you were frittering, and put it towards paying your highest interest bill. Once that bill is paid off, move to the next highest interest bill, and so on, until your debts are paid.

Money basics start with knowing your own spending patterns, changing the ones that cause you to waste money needlessly, and having the discipline to do things differently.

First, go back through three to six months’ worth of your finances. Figure out what bills you owe, and when. For example, do your utility bills only come every second month? If they come due during one of those layoffs, that can make for a rough month-and possibly an unpaid bill-if you haven’t set aside money for them. You want to use the past several months’ financial history to tell you how much you need every month to make ends meet, and avoid unexpected surprises like the electric bill.

Next, open a savings account, if you don’t already have one. In those higher earnings months, set aside the extra money earned to bail yourself out during layoffs, or shorter working hours-whenever your pay cheque might be short. It’s always tempting to treat yourself to something special when you have a few extra bucks in your pocket. But you’ll feel a whole lot better if you don’t, and then, when the bills come home, you have money in your pocket to pay for them.

Here’s the hardest part. Set money aside from your higher paycheques until you have one month’s worth of bills and living expenses in your savings account. This may not happen overnight. It can take six months or even longer, to get this kind of cash together. But, if you can set aside a month’s worth of expenses into your savings account, then you can start living from the savings, and not pay cheque to pay cheque.

Since you know your monthly costs, you transfer only that amount into your chequing account. In the months where you make higher pay, that extra money stays in your savings account. In the lower pay months, you use those savings to ensure your bills are paid on time, and in full.

Setting up this kind of system takes time, and discipline. But it’s worth the rewards of not having to fear a layoff, shorter hours, or forced vacations.

Several Canadian financial institutions are offering programs to help guide people through the tough times when it comes to debt overload. They say that consumers should monitor their credit profiles to avoid becoming financially overextended and that there are steps that Canadians can take before resorting to bankruptcy.

To keep financial matters in check, it is advised that consumers should keep their housing costs around 28% of their income and overall debt payments around 35%. If consumers are utilizing 30% of their credit limit, it may be a warning sign. If consumers are using 50% of their limit, that is a red flag.

Filing for personal bankruptcy may provide financial relief to consumes who have taken on too much debt, but a bankruptcy will remain on your credit file for many years and can severely impair your ability to borrow in the future. Canadian financial institutions have seen over 30,000 people come to seek financial and debt-paying advice through their programs. Many people are not even aware that most banks offer such programs.

It’s hopeful that Canadians will see better times in the next year as consumer confidence has risen since November. Financial planners recommend consumers have a six-month supply of money saved for emergencies. Only a few years ago these same planners were recommending three-months worth of emergency funds were saved. Savvy planners are able to prepare for unforeseen life events. An insurance policy for $50 a month can easily save you $100,000 in unforeseen medical emergency debt.

If you find yourself on the brink of bankruptcy, reconsider filing. Instead you may want to try altering your budget, using your savings to pay down loans, calling creditors to rework payments, selling a few assets to put towards your debt or consolidating debt to make the monthly payments easier. If you already have bad credit and do not feel traditional banks are an option for consolidating your debt, there are many private financial institutions that specialize in bad credit loans that may be able to help with debt consolidate  to help you get your bad credit under control.