One of the reasons that people get into unmanageable debt is that they leave it too late to admit that they have financial problems. Admitting that you are in trouble means that you are half way to solving the problem. If any of the following applies to you then you should think seriously about how you are going to manage your debt.

1. You only make the minimum payment on your credit cards
2. You’re up to the limit on most if not all of your cards
3. You regularly spend more than is coming in
4. You skip payments or use one card to pay off another
5. You’re not sure how much you owe or what state your credit report is in
6. You often make late payments and end up with charges
7. You and your partner argue over money
8. An unexpected expense like the washing machine breaking down is a major problem
9. You’ve been turned down for a loan or other type of credit
10. You car is not worth as much as you still owe on it
11. Creditors keep calling about your debt
12. You are considering going bankrupt
     

You may not realise it but you are on a dangerous path. If you don’t want to file for bankruptcy then you need to do something about settling your problems immediately. As soon as you recognize that you are in over your head then you should seek some help from a debt counsellor. A counsellor may be able to direct you to other ways of settling your debt rather than bankruptcy. Once you file for bankruptcy it stays on your credit record for six or seven years, you cannot get credit and you won’t be allowed to hold a bank account.

A debt advisor might suggest that you try for debt consolidation before you consider bankruptcy. Before you go to see a debt advisor you should work out just exactly how much you owe and to whom, you should also work out a budget detailing your income and outgoings. If you are spending more than you earn then the first thing you should do is to cut your spending habits. You should also stop using credit cards straight away. You need to be able to find some spare money to pay the consolidation company then they will charge you a single monthly amount and then divide that between your creditors. You may also want to consider taking a second job to help pay off your debts before you seriously consider bankruptcy. If you do decide to file then you need to speak with an attorney about which chapter you need to file under and whether there are any alternatives to bankruptcy.