If you're reading this post, then it means you're considering bankruptcy. So you probably know what it feels like to have your debts pile up so high you feel you can't manage them. Bankruptcy can be a great tool to give you a fresh start, but there are other ways of dealing with your debt that can be better for you, and your credit, in the long run. In this section we'll explore what you can do to resolve your debt problems yourself, where you can go for professional credit counseling, and how a debt management program works.

If you can work out a repayment plan with creditors yourself, this is a great alternative to bankruptcy. You may be able to have your monthly payments lowered or temporarily suspended. And, you may be able to pay less than you owe. Don't be afraid to contact your creditors and let them know where you stand. The worst they can do is say no.

If you have trouble controlling your debts or negotiating with your creditors, a professional Credit Counselor can help. They can try to resolve your credit problems for you, and create a repayment plan for you to pay off your debts.

A credit counseling service will help you apply for a Debt Management Plan. Under a Debt Management Plan, your credit counselor will negotiate with your creditors to make your debt payments for you. Sometimes they can get the creditors to waive or reduce fees and penalties, and reduce your interest rates. You will then make one payment per month to the agency, and they will pay your creditors. Your creditors benefit because they don't lose the entire debt, as they might if you declared bankruptcy. And the counselors often get paid by the creditors, so it might be free for you to use the service. Just make sure you choose an accredited, non-profit agency, and that you fully understand all of the terms of any repayment plan. A Debt Management Plan only works if it is a plan you can stick with until all your debts are paid in full. How To Request Your Credit Report?

If you want to find an accredited agency, try visiting the website of the Association of Independent Consumer Credit Counseling Agencies, at www.aicca.org, or give them a call at 703-934-6118.

To recap, Bankruptcy can affect your credit for several years, so it's a good idea to consider all of your options before making a decision. Remember, you can try negotiating with your creditors to arrange a repayment plan. And non-profit credit counseling agencies are another alternative. These services can help reduce your debt, lower your interest rates, and help get you back on your feet. But you need to make sure the Debt Management Plan they propose actually works for you, and is something you can stick with until your debts are completely paid off.