Don't Get On The Bankruptcy Train - There Are Other Ways To Conquer Debt

Online, May 4, 2011 (Newswire.com) - In this day and age, you'd be hard-pressed to find someone who isn't carrying at least some debt. It seems to be a way of life for most consumers.

For some, it can become so overwhelming that bankruptcy seems to be the only way out. But before you file bankruptcy, consider the devastating effect it can have on your credit score and seek other alternatives. If there's another way to save your credit and get out of debt, even if it takes a bit longer than you'd like, it's a much better option than bankruptcy.

First of all, consider selling your assets. Sell whatever you can spare and use the money to pay off your debts. You can sell items on eBay, Craigslist or in a yard sale. You may chafe a little at the idea of parting with your things, but you'll adjust. And avoiding bankruptcy and keeping your credit intact will certainly aid in the transition.

If you can afford to pay off your debts over a period of time, you should go for it. If you take a closer look at your budget, you may be able to make some cuts - like cable or cell phones - and save some money. You can use that money to help pay down your debt more quickly.

Remember that your creditors would rather get some money out of you than none at all. Let them know you are having a rough time, and that you want to avoid bankruptcy. Tell them you want to repay your debt, and ask if they would be willing to lower your monthly payment or decrease your interest rate. Or even both.

If you have no luck working with creditors on your own, enlist the help of a professional. Find a consumer credit counselor who has experience working with creditors to help you get your payment and interest rate reduced.

Another option is debt settlement. This is not the best option, but it's certainly better than bankruptcy. Don't settle on any debt that is current, but instead focus on debts that have been charged off or sent to collection. Be ready to pay as soon as an agreement has been made.

You can and should consider all of these things as your "arsenal" against bankruptcy. By combining any or all of these things, you can get out of debt on your own and avoid falling into the bankruptcy trap.