Whoa -- it's time to rein in those galloping, high interest debts.

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Consider yourself lucky that you don't have access to home equity to bail yourselves out. Since your credit is bad, you'd end up with a consolidated loan at a high interest rate that you'd be paying over more time than you can imagine. And if you didn't solve the core problem of spending more than you earn, where would you go from there?

Trying to solve debt problems with more debt is like trying to get a kid to stop hitting by hitting him -- it's short sighted. It's time to do some long-term thinking: What do I have to do now so I'll have the cash flow to afford a home tomorrow? It's a challenge, and here are some suggestions to help you meet it.

Stop using credit cards

It's a radical move, but the credit cards have to go. Put one in a safe place, nowhere near your wallet, for an emergency. Charging things you can't afford got you into this bind, and the road to freedom is paved with shredded credit cards.  

Cut your expenses

The Diva is talking bare-bones until you get out of debt. Spread out your bills -- touch them, examine them, and for each purchase ask: Was this worth being in bondage for? Psyche yourself up, and give yourself a new hobby -- finding ways to cut costs on every expense category you have.

• Housing costs -- Can you live on the military base? If not, can you find a cheaper rental?
• Miscellaneous -- Impose a moratorium on anything you don't really need -- cell phones, cable, health club, that second car.
• Get rid of temptation -- No more recreational shopping. You'll find yourself with the time you've been looking for to read a book, take a class, write a letter, wash the car, stir some homemade soup.
• Food -- Pack your own lunch; make your own coffee; eat in; save big bucks by cooking in quantity and freezing. See Bankrate.com story, “Once a month cooking saves cash."
• Pay your bills -- Pay them on time -- late fees drain cash.

Increase your income

The flip side of stopping cash outflow is increasing inflow. The Diva has some suggestions:

• Education -- Take advantage of every educational opportunity available to you. This capital investment will make you a more valuable player in this game called life.
• Cash in -- Gather up all that stuff you bought on credit and don't use any more, and sell it.
• Can you moonlight? -- Teach something. baby-sit. Turn a hobby into a moneymaker.

Debt management

If you're not making any progress in reducing those debts and creditors are banging at your door, you might want to contact the National Foundation for Consumer Credit. This is a nonprofit organization that can help you work out an affordable repayment plan and help you set up a budget so you will be able to afford that house in the future. See the Diva's  “A Wolf in Sheep's Clothing? What is Consumer Credit Counseling Service?," for an explanation and a link to the foundation's Web site.

Being enrolled in a CCCS debt management plan will show up on your credit report while you're making the payments, and the Diva doesn't know how this will impact any security clearance you might have. But she knows that big debts and a security clearance are about as compatible as oil and water. If you have both and you want to keep your job, you'd better change your lifestyle as soon as you finish reading this sentence.