Mounting debt is usually the first sign of financial trouble. Houston Financial Advisors Richard J. Alphonso, J.D., CPA, M.S.T. and Steven A. Estrin, M.B.A., recommend these strategies for getting debt under control.

• Have your home reappraised for the purpose of refinancing your mortgage. Assuming your home has appreciated quite a bit, refinancing will enable you to consolidate all of your debt into one monthly payment, lower your interest rate and lower your cash outflow.
• Pay cash for all consumer expenditures — a bank ATM (debit) card will do just fine.
• If you must use plastic, charge all of your purchases to the same card (preferably one with frequent flyer miles) and pay your bill off each month, no exceptions.
• Leverage only for investments. It’s okay to finance your family home, an office building or your new ambulatory surgery center. Making Uncle Sam a partner via tax deductions on interest payments lowers the cost of the investments.
• Structure only positive cash-flow investment projects.
• Before financing your next expenditure, calculate the after-tax cost against the anticipated rate of return on the expenditure. If the rate of return is positive, move ahead with the investment; otherwise, abandon your plans. For example, if the investment will yield a 10% return, and the after-tax cost is 4%, you’ve got a pretty good deal!