Alternatives to Filing Bankruptcy

There is just no easy way to get out of debt, you have to face up to the consequences. A bankruptcy is not always the answer, as the effects are long lasting. There are four ways to handle debts that are out of control, listed in best to worst in regards to the effect it will have on your credit:

If your credit isnt in terrible shape, can you reduce your other expenses, even if it means making hard choices or just change your lifestyle to fit your ie? Some ways to do this:

1. Selling the second car
2. Pulling equity out of your home
3. Applying for a non secured signature loan
4. Obtaining a loan from a relative
5. Selling your home and paying off your debts with the proceeds and then renting
6. Cashing out your 401K/retirement benefits
7. Selling family heirlooms, jewelry, etc…

If your credit is already gone or one of the above isnt an option, go through Consumer Credit Counseling Services (CCCS). Check your yellow pages for the local number.

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