Facing debt head on

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NEW YORK (CNNMoney.com) -- Question 1. I owe about $16,000 in credit card debt I am unable to pay what can I do? I am 4 months behind. Is consolidation a good solution? -- Hassan, Conn.

Generally it's not a good idea to take out new debt to cover old debt. It's in your best interest to call your creditors and try to work out a payment schedule. Perhaps you can have your bills suspended for a certain amount of time; maybe you can get out of paying late fees and penalties or get your principle amount reduced.

Consolidation is not only hard to get nowadays, but unless you have a plan to pay off the new consolidated loan, you'll just be digging yourself deeper into debt without really addressing the problem.

Question 2. I am drowning in student loan debt without a real way to pay it and live. I have already exhausted forbearance options while searching for employment. I have set up a budget to help, but after I pay, there isn't even enough to live on. Are there are any options to resolving my debt? --Johnson, Texas

If you have federal loans, you may be able to take advantage of the government's Income Based Repayment plan. It basically pegs your payments to your income -- and since you have no income, you may pay nothing per month. Go to the U.S. Department of Education if you think you qualify.

But if its private student loans you're talking about, you have much less leeway. Your best bet is to call your lender and let them know about your hardship. Explain that you've been trying to get a job. They may extend the forbearance according to Mark Kantrowitz of Finaid.org.

Otherwise, try as hard as you can to save up a little money each month. Even if that means canceling cable and taking on a roommate to share living costs.

Question 3. How much money should go towards housing? There are so many factors to consider. Would you be kind enough as to give me some pointers as what to look for or avoid? -- Terry

Spending the right amount for your house is critical to making a good investment. If you agree to spend more than you afford, you set yourself up for all kinds of problems. As a rule of thumb, you don't want to spend more than 28 to 33% of your gross income on housing.

To figure out how much you can borrow, get a handle on your income, then calculate your debts to determine how much you can afford. And don't forget about utility costs, property taxes, insurance and maintenance costs.

To get a sense of your taxes, contact your local tax assessor's office.

For utilities, go to http://www.www.fns.usda.gov and type in Standard Utility Allowance in the search tool for an estimate.

You can check out state-by-state insurance estimates at iii.org.

-- CNN's Jen Haley contributed to this article.