Devise a Plan

• Take an hour to consolidate bills and expenses and get a picture of monthly expenses. Start with secured debts, including the home and car. Follow this by mandatory incidentals: utilities, groceries, insurance, etc. Third is credit card statements, followed by the expendables or "wants" such as eating out, clothing and gym membership. Tally up the totals and determine how is much being spent on frivolous items and cut appropriately.
  
  

Credit Before Bankruptcy

• Stop using credit cards if you believe that you're going to file for bankruptcy. Obviously you don't have the means to pay back the debt if filing for bankruptcy, and some courts will consider this fraud. Contact the creditors that are incessantly calling. Some will work out a payment plan or find other ways to help. Ignoring the companies only complicates matters. Similarly, call hospitals and work out a plan to pay off medical debt. Some institutions offer low payment options or a sliding fee scale based on income.
  
  

Take Stock of What You Have

• Consider selling extra vehicles. Find a carpool or bus schedule that allows one vehicle to be shared among the whole family. Credit takes a serious hit when a vehicle is repossessed. Go through the house and storage and decide what possessions are needed and what's a luxury. Selling the latter items will bring in some extra cash and make it easier if you have to move to a smaller location. Pay the most important debt with the money you earn from garage sales: rent or mortgage. Follow this by the vehicle payments, other debts and finally credit cards. Creditors will repossess a vehicle at any moment a payment is in default. Other creditors usually take longer to act on a debt.
  
  

Get a Second Job

• Side jobs will bring in much-needed extra money. Delivering pizza is just one option. Consider your talents and put them to good use. Start a graphic design business out of the home or walk the neighborhood's dogs. Take a look at what services are needed in your area and advertise.