Credit Counseling Credit counseling services are available. These groups will work with you to itemize your debt, create a reasonable budget and repayment plan and help you contact your creditors to arrange for alternative payment plans. In this case, the new loan will pay off all your debts and you need to pay just one creditor. Shop around for the best interest rate you can find. Bankruptcy Bankruptcy should be a last alternative.
Bankruptcy is a legal act with loads of implications.
Before You Get in Trouble Look for ways to save. You can often save several hundred dollars each year by paying your charge card purchases in full. Get rid of all but one or two charge cards to reduce the credit card fees you're paying. Take the cards out of your wallet and put them in a small plastic bowl. Fill the bowl with water and freeze.