Financial problems amongst Americans are on the increase.
Bankruptcy is one solution but it is wise to consider this carefully before using it.
The problem may have occurred suddenly due to job loss or a medial emergency.
You are not alone in this situation but whatever has happened there are ways to get out of debt.
Keep in mind, however, that debt relief doesn't come overnight, and debt doesn't just disappear, it can only disappear completely when it is paid off.
There are always commercials and advertisements about debt relief options being flashed on TV or in the newspaper.
You would be wise not to readily commit to anything until you know more about the process.
Warnings are now coming from the Federal Trade Commission about signing up with companies that advertise in this way.
It is good to be aware that you may have a worse credit record after you have used the services of one of the firms.
While debt relief isn't always immediate, there are some ways to start the process.
Your situation with your creditors is important because if you keep them informed they should be able to help you with lower interest rates or monthly payments.
An arrangement for payment could be set up which will lower the possibility of poor credit later.
Don't dismiss specialist credit counselling although they may charge you a small fee, quite often there isn't a fee.
Sometimes they might simply be able to help you better organize your budget and spending for some debt relief or they may be able to help you contact your creditors and work something out with them.
It never hurts to follow the advice of these professional as they know exactly if what you plan to do will affect your credit rating.
You should never be reluctant to contact specialist debt counselling services as their guidance should help you immensely.
If you own your own home and there's spare equity available, it may be worth going to your bank and requesting an equity loan especially if you are working in a regular job.
Equity loans can help debt relief but only if the amount of the new loan is lower than the ones that have been cleared and if you fail to pay this debt your house is under threat.
A par-time job or other additional work might be the answer to your debt relief without any other action.
Some families have spouses who work several jobs just to put food on the table and assist in debt relief.
Provided they are only used for your immediate situation there is no need for them to be a permanent state of affairs.
Destroying your credit cards should be done at the earliest opportunity as this will stop you spending on them and increasing your debt.