Making New Year resolutions is an age-old tradition of making a commitment that's focused at reforming or changing something negative into something positive. Many people want to make the resolution to solve their debt problems but don't know how to follow through with results.

If you're like many people 2009 ended with financial stress and the start of the New Year isn't looking very bright. The holidays for many mean maxed out credit cards and payday loans leaving very little hope to stay above water let alone get ahead. Getting behind with debt payments causes stress and if you're three months behind then categorically, those debts are considered delinquent. You're not alone. Equifax Canada reported that as of May 31, 2009 over half a million Canadians were more than ninety days past due on their credit payments.

Trying to consolidate debt can be like hitting brick walls because bad credit impacts your ability to get a loan from many financial institutions. But, there are alternatives to traditional or payday loans available, even to those with bad credit. One such alternative is a car title loan. These are loans which are based solely on the value of your vehicle, and because these loans are secured, the borrower's credit rating is virtually irrelevant.

Imagine starting the New Year by paying down debt you thought you'd never be able to make a dent into. Reducing the balance of your credit cards is essential in helping to build up your credit rating. Carrying a balance over 75% of your credit limit puts you into the credit rating "dog house." Not only is it not favourable, but what if you had a financial emergency? Having room on a credit card is crucial should there be an emergency and you need cash instantly.

That "room to breathe" is also important for the sake of your emotional and physical health. Stress has been known to have a significant impact on an individual's health, and the constant burden of financial stress is not only one of the leading causes for ill-health, but in relationship troubles. Paying down that credit card debt will provide relief and give you peace of mind.

Paying down credit card debt can seem like a never ending cycle. By obtaining a car title loan, you can put an "end" date on your debt. While it may take longer than 1 year to pay all of your debt, you can make 2010 the year you began your journey to being debt-free.