Even in the days of the tightest credit in 2008, HELOCs [ home equity line of credit ] and home equity loans were being made.

If you have even a smidgen of doubt that you'll be able to stay away from racking up additional debt, don't do it.

You really don't need to hire a debt settlement company to negotiate with your creditors.

Sometimes a creditor is willingto do this as a bargaining point - you give the creditor cash in hand, it gives you a positive listing on your credit report - even though you haven't paid the full amount. Get this agreement in writing.

If you default on an unsecured debt, you won't lose anything (except points on your credit score).

When you default on a secured debt, the creditor takes the asset that backs up that debt. When you convert credit card debt to mortgage debt, you are securing that credit card debt with your home. That's a risky proposition.

Turn down offers for new cards or credit line increases on your current cards. Credit's tight, and chances are, you're not getting many offers anyway. But if you do, remember that the less credit you have available, the less trouble you can get into.