11. BANKRUPTCY AT THE DOOR

PROBLEM: The bills are becoming overwhelming.

SOLUTION: Get help before filing for bankruptcy. First, tell your lenders about your struggles ; they could lower your rate or move your payment date. Also contact a reputable credit counseling agency, which can help you set a budget, negotiate with creditors and dig out of debt. See the list of agencies approved by the U.S. Trustee’s office. Consider a debt-management program : You send the credit-counseling agency money every month, which it distributes to your creditors. The agency can also lower your interest rates and wipe out your penalties.

For more help, contact a bankruptcy attorney. See Live Debt-Free for more advice about getting out of debt.

By Kimberly Lankford